Under the federal Fair Credit Reporting Act (FCRA), employers are required to provide a Summary of Rights form to individuals who are the subject of an investigative consumer report and/or before adverse action is taken based on the results of a background check or consumer report.  Alternate rules apply where a consumer report is obtained for an over-the-road truck driver applying for employment by remote means (e.g., electronically or by fax). 

Employers using consumer reporting agencies to perform background checks or prepare consumer reports should take note that the Consumer Financial Protection Bureau has issued a new version of the Summary of Rights form effective January 1, 2013.  The changes only update federal agency contact information; however, employers must use the revised form to remain in compliance with the FCRA.  The new Summary of Rights form can be downloaded here at Appendix K.

The FCRA has been growing in popularity among the plaintiffs’ bar as a source of litigation, including class litigation based on alleged technical defects in employers’ forms and procedures.  Accordingly, employers should review their FCRA documents to ensure that this new form is in use beginning January 1, 2013 – and use this as an opportunity to make sure they are otherwise complying with the requirements of this federal law.