The Economic Growth, Regulatory Relief, and Consumer Protection Act took effect last year. In conjunction with this legislation, the Consumer Financial Protection Bureau (“CFPB”) has issued an interim final rule that applies to employers under a new section of the Fair Credit Reporting Act.
As of September 21st, 2018, employers should have updated the Summary of Consumer Rights provided to applicants and employees before obtaining a consumer report and concurrent with potential adverse action based on the report. Importantly, the notices must inform applicants and employees that they can receive free “national security freezes,” and that fraud alerts must be in place for a minimum of one year.
This rule allows for the applicant and employer to both be informed, prior to employment, of their respective rights and obligations should any action need to be taken thereafter. Small business owners need to be aware of this new rule established by the CFPB because there could be ramifications if it is not followed. The rule is currently in place and employers can obtain the information and model form from the CFPB’s website.
If you have any questions, please contact us.
Written By Steph Wood
Steph Wood is an experienced marketing professional with a background in creative branding, business development, and strategic communications. She spent over 15 years leading her own agency, developing campaigns and strategies for nonprofits, athletes, and businesses. She also served as Director of Marketing & Special Events for the Boys & Girls Clubs of the Virginia Peninsula.
Steph studied graphic design and communications at Chowan University and later pursued business and ministry leadership at Regent University. At Parks Zeigler, she oversees firm-wide marketing and intake, bringing expertise in campaign strategy, digital media, communications, client relationships, and community engagement.
A proud mother to an Old Dominion University graduate, Steph is also a speaker on topics of leadership and empowerment.
Related News Articles
