Companies who use third party services to obtain criminal and credit background reports on contractors and/or employees and prospects have to comply with the Fair Credit Reporting Act (FCRA). One of the requirements is providing a copy of the “Summary of Your Rights” notice to the individual if the company intends to take adverse action based on the results of the background search.

The Consumer Financial Protection Bureau, the government agency responsible for enforcing the FCRA, has recently updated the “Summary of Your Rights” notice. The new notice can be found at https://files.consumerfinance.gov/f/documents/bcfp_consumer-rights-summary_2018-09.pdf

Companies should start using this updated notice immediately. Failure to do so can expose employers to liability and potential class action lawsuits.