CFPB LogoAs of January 1, 2013, the enforcement of compliance rules for the conducting of third-party background checks will transfer from the FTC to the newly formed Consumer Protection Financial Bureau (CPFB), which will require an update to forms used for reporting checks under the Fair Credit Reporting Act (FCRA). Three new forms will be added as appendices to 16 CFR part 698 and labeled Appendices F, G, and H. The forms are available on the official federal regulations website and now instruct applicants to contact the CPFB for information on their rights.

The new protocol that must be followed in order to remain in compliance with the FCRA involves the following steps:

• Informing applicants of the intent to run a background check;

• Obtaining authorization to perform a background check from applicant (or employee) in advance;

• Giving advanced notice to an applicant (or employee) that the company is taking an action adverse to that person’s employment status based on information obtained from a background check; and

• Notifying all affected parties.

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