Employers, including nonprofits, that perform background checks on prospective or current employees or volunteers are required to take certain actions under the Fair Credit Reporting Act (FCRA), including providing specific forms to any individual that will be subject to a background check. New regulations require employers conducting background checks to update those forms by January 1, 2013. The changes consist primarily of substituting the Consumer Financial Protection Bureau (CFPB) for the Federal Trade Commission (FTC) as the point of contact for questions regarding consumers’ rights under the Act.
Vendors that perform background checks on behalf of employers usually provide those forms for employers to deliver to subjects of background checks. However, employers should still check to make sure they are sending the updated form.
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