Updated FCRA Disclosure Forms Impact Minnesota Employers
Minnesota employers are required to use recently updated Fair Credit Reporting Act (“FCRA”) disclosure forms. The new model disclosure forms “A Summary of Your Rights Under the Fair Credit Reporting Act” and “Summary of Consumer Identity Theft Rights” take effect September 21, 2018. Employers and background check companies that are required to provide these disclosure forms to employees and job applicants should start using the new forms beginning September 21, 2018 to avoid any gaps in compliance.
The new model disclosure forms and the interim final rule were released by the Consumer Financial Protection Bureau (“CFPB”) on September 12, 2018. The new forms include a revised notice of rights describing an individual’s right to receive fraud alerts or obtain a security freeze on their credit report from national consumer reporting agencies.
The CFPB updated the model disclosure forms after section 605A(i) of the Fair Credit Report Act was added by Congress in the Economic Growth, Regulatory Relief, and Consumer Protection Act. The new section requires credit reporting bureaus to provide consumers with fraud alerts on their credit account and a security freeze on the release of information in their credit report. This is intended to make it more difficult for identity thieves to open an account in a consumer’s name.
According to the CFPB, businesses can use the new model disclosure forms or a combination of the old disclosure forms along with a summary of the fraud alert and security freeze rights, “so long as a separate page that contains the additional required information is provided in the same transmittal.”
The FCRA applies to certain consumer reports and investigative consumer reports procured by employers from third party consumer reporting agencies. Employers are required to provide the updated forms to job applicants and employees under certain circumstances. (For a summary of these requirements, read our article entitled, FCRA Class Action Lawsuits: What Employers Need to Know.) Therefore, Minnesota employers covered by the FCRA must begin using the updated forms starting on September 21, 2018.
Links to the newest FCRA forms are provided below:
Summary of Your Rights Under the Fair Credit Reporting Act
Summary of Consumer Identity Theft Rights
If you are a Minnesota employer with questions about the FCRA or utilizing the newly-updated FCRA disclosure forms, please contact one of the Minnesota FCRA law attorneys of Trepanier MacGillis Battina P.A.
About the Author:
Minnesota FCRA law attorney Anna M. Koch represents both employers and employees in a variety of employment law matters, including FCRA compliance and litigation. Anna can be reached at 612.455.0991 or firstname.lastname@example.org. Trepanier MacGillis Battina P.A. is a Minnesota FCRA law firm located in Minneapolis, Minnesota.
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