FACT Act Update
It is important that all organizations that perform employment background checks in the United States are aware of any changes that have occurred within the FCRA guidelines, as a result of recently enacted legislation, referred to as the Fair and Accurate Credit Transactions Act of 2003 (FACT Act).
FACT Act, required the Federal Trade Commission (FTC) to update some key FCRA materials relevant to the employment screening process. One updated document that all employers should be aware of is the notice entitled "A Summary of Your Rights Under the Fair Credit Reporting Act." It is important to note that, if your firm was using a previous version of this document, you are required to discard the old version and begin using the updated notice, effective as of January 31, 2005.
More information can be found on at the FTC site at: http://www.ftc.gov
Summary of the FCRA changes reflected in the new consumer summary of rights form as a result of FACT Act are as follows:
1. To better serve Spanish-speaking consumers, the following language was added to the form: "Para informacion en espanol, visite www.ftc.gov/credit o escribe a la FTC Consumer Response."
2. Consumers must be notified that on request they are entitled to a free copy of their credit report every 12 months from the nationwide credit reporting agencies. This obligation is being rolled-out on a regional basis across the U.S. during 2005, so for some period of time the consumer's ability to obtain a free report will depend on where they reside, until it is rolled out across the country.
3. Identity theft victims have additional rights that are summarized in the form and can be reviewed on the FTC web site.
The FTC also released a revised "Notice to Users of Consumer Reports", This form summarizes the employer's rights and responsibilities under the FCRA and can serve as a good guide to help ensure compliance with the FCRA. |