Alert! New Law Leads To Revised Fair Credit Reporting Act Disclosure
Volume 17, Issue 19
September 24, 2018
A new “Summary of Consumer Rights” disclosure has been issued by the Bureau of Consumer Financial Protection. Employers and their background check vendors who issue this notice to employees and applicants in compliance with the Fair Credit Reporting Act should begin using the updated version of this form now.
The disclosure was updated to provide information regarding “national security freezes.” This new requirement stems from the Economic Growth, Regulatory Relief, and Consumer Protection Act, passed earlier this year, which requires nationwide consumer reporting agencies to provide “national security freezes” free of charge to consumers. A “national security freeze” restricts prospective lenders from obtaining access to a consumer’s credit report, which makes it harder for identity thieves to open accounts in the consumer’s name. This Act mandates that whenever the Fair Credit Reporting Act requires a consumer to receive either the “Summary of Consumer Rights” or the “Summary of Consumer Identity Theft Rights,” a notice regarding the new security freeze right also must be included.
The revised form can be found here.
KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.