Scopelitis, Garvin, Light, Hanson & Feary, P.C.


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Background Checks Will Require the Use of a New Form Beginning on January 1, 2013

Dec 7, 2012

Given that segments of our industry rely on the use of consumer reporting agencies to perform background checks and prepare consumer reports, transportation employers will want to ensure that they are using a new version of the Summary of Your Rights Under the FCRA form (Summary of Rights) in order to comply with the Fair Credit Reporting Act (FCRA).

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 transferred the rulemaking and enforcement powers over the FCRA to the newly created Consumer Financial Protection Bureau (CFPB). The CFPB recently issued a new version of the Summary of Rights form that should be used by employers beginning on January 1, 2013. This new Summary of Rights form resembles the old form, but directs individuals to contact the CFPB for more information on their rights under the FCRA. The new form can be downloaded here (See Appendix K).

As a reminder, the FCRA requires that employers provide individuals with a Summary of Rights in the following situations:

1. Adverse Action. If an employer is going to take some type of adverse action against an individual based in whole or in part on the contents of a background check or “consumer report”, the employer must, prior to taking any adverse action, provide the individual with a “pre-adverse action” notice and a Summary of Rights.

2. Investigative Consumer Reports. If an employer plans to obtain an “investigative consumer report” on an individual (an assessment of an individual’s character, general reputation, or personal characteristics obtained through personal interviews with the individual’s neighbors, friends, and associates), the employer must provide the individual with advance written disclosure of its intent and a Summary of Rights.

Carriers should review their FCRA compliance protocol to ensure that this new Summary of Rights form goes into use on January 1, 2013. For additional information, please contact David Robinson at 317-637-1777.