What is FCRA?
The FCRA (Fair Credit Reporting Act) is a federal law regulating the collection and reporting of an individual’s background information. A CRA (consumer reporting agency) and employer both have obligations under the FCRA. It also protects the consumer with provisions like: consent must be obtained, the consumer has a right to receive their report, the consumer has a right to dispute information, etc. For more information reference the FCRA here.
Summary of Rights
A Summary of Rights Notice as Required by the FCRA is a summary of the consumer’s rights as it applies to background screening. Consumers must receive a copy of the FCRA Summary of Rights. Additional state and local summaries may be required.
The last time the Summary of Rights was updated with non-substantive changes was on March 17, 2023. The non-substantive changes include new contact information for the CFPB and other federal agencies. It also removed an obsolete business type: “Federal Land Banks”.
Click here for the Summary of Rights Notice in both English and Spanish Versions.
The most current and up-to-date disclosures and authorizations can be accessed within the Choice Screening digital consent form process. If you are not using our digital consent form process, reach out to your account manager today to ensure you have the most current and updated forms in order to stay compliant!
A Word of Caution
The employer cannot delegate responsibility for compliance of the FCRA to a CRA, nor can they claim they did not realize they were in violation of FCRA. This means an employer must take responsibility for compliance. Saying you did not realize you were violating the FCRA is not a defense (i.e. a strict-liability statute).
Increase on the Ceiling of Allowable Charges
On December, 15th it was announced by the CFPB (Consumer financial Protection Bureau) that annual adjustments to the allowable charges are increasing, effective in 2026.
Section 612(f)(1)(A), pursuant to section 609 of the FCRA states that a CRA may charge a consumer a reasonable amount for disclosure to the consumer. The ceiling on allowable charges under section 612(f) will increase to $16.00 in 2026. The increase is based proportionally on the Consumer Price Index.
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This blog is intended for Choice Screening's current or prospective clients and partners and may not be forwarded outside of Choice Screening, posted online, or otherwise reprinted in whole or in part. The information contained in this blog is meant to be information only, it is not all encompassing, nor contains legal advice, expressed or implied. Consult with qualified legal counsel in all matters of employment, business, and background screening law.
