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New FCRA Summary of Rights Notice for Use by Employers When Conducting Background Checks

Volume 4, Issue 1
March 1, 2005

The Fair and Accurate Credit Transactions Act of 2003 ("FACTA"), which amended the Fair Credit and Reporting Act ("FCRA"), including lifting many of the requirements placed on employers that use third-party investigators in workplace investigations ( See Employer Report, Vol. 3, Issue 2 dated March 31, 2004), also required that the Federal Trade Commission ("FTC") issue and/or update various documents for use by the public. The FTC recently finalized these documents, which are for use as of January 13, 2005.

The newly updated documents include the Summary of Rights employers must send to employees with a pre-adverse action notices when running background checks conducted by third party consumer reporting agencies. The Summary of Rights can be accessed at: http://www.ftc.gov/os/2004/11/041119factaappf.pdf

Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.