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Updates to background check required notice

The Consumer Financial Protection Bureau (CFPB) has released an updated form for background check users to incorporate into their document packet. The Summary of Your Rights Under the Fair Credit Reporting Act (FCRA) document takes effect on April 19, with a grace period until March 2024. While the changes to the form are minimal, we wanted to share information regarding the purpose of the form.


If you conduct a background check on a candidate and plan to take adverse action based on the results, there is a process that must be followed. First, the applicant should be provided with a copy of the report with the adverse action listed and a Summary of Your Rights Under the FCRA. This allows the applicant to review the findings and provide evidence that refutes the claims in the background check report. 


For example, if the applicant’s school does not have a record of their degree but the applicant can provide a copy of their transcript and degree, this may refute the background check report findings. This can happen if the college uses a third party to verify degree information. If the applicant is not able to provide proof or information to refute the claims, then you as the employer may have enough information to withdraw the offer of employment. 


Reach out to the consulting team for guidance on your background check process.


 

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