Regarding Fair Credit Reporting Act

 

 Implementation Date: 9/21/2018
Overview: A new amendment has been made to the Fair Credit Reporting Act, effective September 21, 2018. We encourage employers to review the new material and contact their attorney to ensure that they understand what impact, if any, the amendments will have on them. The amendment changes the section pertaining to the obligations of background check vendors.
They are now required to take certain actions when they are notified that a “consumer” has been or is about to become the victim of fraud or identity theft. The changes include a new consumer right that will allow them to obtain a “security freeze.” A “security freeze” is a restriction that prohibits a Consumer Reporting Agency from disclosing the contents of a consumer report to someone requesting the report.
 
The new law also provides for a new notice entitled “Consumers Have The Right To Obtain A Security Freeze” under certain circumstances. There is an article from Littler (law firm) that addresses the new obligations. The article can be found here.
 
Additional information can be found here.
  
These two articles provide information about the changes and the possible impact it will have on employers doing their own background checks and employers using agencies to provide them this information.
If you have any questions on this topic or other HR matters, please don’t hesitate to reach out at 503-885-9815 or email us at info@HRAnswers.com.
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