Employers Must Update the Summary of Consumer Rights Provided to Applicants and Employees

Employers who use consumer reports to make employment decisions must comply with the Fair Credit Reporting Act (“FCRA”). Under the FCRA, among other things, an employer taking adverse action based on information in a consumer report, such as a credit report or background check, must provide the affected employee or applicant with a copy of the relevant report and a Summary of Consumer Rights.

The Consumer Financial Protection Bureau (“Bureau”) recently updated its model Summary of Consumer Rights to comply with new legislation. Specifically, the Economic Growth, Regulatory Relief, and Consumer Protection Act, which passed in May 2018, requires consumer reporting agencies to provide free credit freezes to consumers.

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