Mandatory third-party background check notice updated

If you use a third party to conduct background checks, such as criminal history reports on applicants or employees, you’ll need to start using a revised “Summary of Your Rights Under the Fair Credit Reporting Act.” The Consumer Financial Protection Bureau (CFPB) announced the revisions in the Federal Register on March 20, 2023, but making the switch isn’t mandatory until March 20, 2024. Thankfully, there are no substantive changes to the notice. The updates simply correct outdated terminology and government agency contact information.

Tips: You can download English and Spanish versions of the notice in both PDF and Word formats by visiting CFPB’s webpage for model forms and disclosures. Look for the documents labeled “Summary of consumer rights – English (Appendix K to Part 1022)” and “Summary of consumer rights – Spanish (Appendix K to Part 1022).” Even though the URLs (web addresses) for the revised notices end in “2018-09,” the notices are in fact the versions updated in March 2023.

As a reminder, this notice is the summary that must accompany the “notice of potential adverse action” that you give the individual when you are considering rejecting them for employment or taking other adverse employment action. If you have questions about how to properly conduct background checks, connect with your Vigilant Law Group employment attorney. For more information, see our Legal Guide, Background Checks: Simple Third-Party Reports and Model Forms, Background Checks: Federal Notices and Background Checks: California Notices.