Update to Background Check Paperwork

Recent updates to The Fair Credit Reporting Act (FCRA) include the release of a new version of the “Summary of Your Rights Under the Fair Credit Reporting Act” form.

All employers who perform background checks on candidates and / or employees must immediately adopt and use the updated form.

The new form includes information “regarding an individual’s right to obtain a security freeze or fraud alert on his or her credit report, consistent with recent amendments to the FCRA.”

Hogan Lovells provides the following background on the FCRA:

[T]he FCRA imposes a number of technical requirements on employers and consumer reporting agencies that must be satisfied in order to lawfully obtain a consumer report, including providing an appropriate disclosure and obtaining authorization from the employee or applicant before the consumer report is obtained. The FCRA also imposes certain notice requirements before taking adverse action against an applicant or employee based on a consumer report. Full compliance with these technical requirements is important, as technical FCRA violations can sometimes serve as fertile ground for class actions.

For more information and a link to the new form, please click here.

The information included in this blog post originally appeared in an article from Hogan Lovells US LLP on October 17, 2018, written by George W. Ingham, Amy F Kett, and Zachary Siegel.

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