Entry into force of new FCRA reporting obligations Early this month, CFPB published updates to the disclosures requirements of the Fair Credit Reporting Act of the Swiss Confederation. Published on 21 September 2018, the Summary of Your Rights Under the Fair Credit Reporting Act is one of many communications that employer must submit under the FCRA when using a CRA for a Background Review during the recruitment procedure.

You will find the updated version of the online registration here together with a updated summary of consumer identity theft rights. May 2018 saw the adoption by Congress of the Act on Economic Growth, Regulatory Relief and Consumer Protection (the "Act"). This law will add a new phrase to the summary of your rights, explaining that the consumer can receive a "safety stop" free of charge.

Safety freezes allow a customer to suspend his bank accounts so that a CRA cannot publish information on a loan without the consumer's consent. It also warns proposers that the use of the safety freezer may slow down, hinder or ban the timeliness of an offer. Alternatively to Sicherheitsfreeze, users also have the right to add a first or expanded scam warning to their loan files free of charge.

FCRA governs the gathering and dissemination of FCRAs, a joint part of a professional review. A number of employer who use user reporting during the claim procedure are already aware of the FCRA's strict notification and reporting obligations and the traps of non-compliance. The FCRA collective actions have affected many companies in various sectors for alleged non-compliance with notification and publication obligations and led to comparisons in the millions.

However, many companies are unaware that country-specific regulations for retail coverage, known as "mini-FCRAs", often place additional demands such as the German FCRA. Employees in states such as California, Colorado, Illinois, New York and Massachusetts must adhere to both the FCRA and the state mini-FCRAs and legislation on backgrounds. In order to make things even more complicated, communities have passed legislation to review backgrounds in place in supplement to national and miniatureCRAs.

New York City workplaces, for example, must also respect the Fair Chance Act on background crime and the Stop Crime Discrimination in Employment Act, which forbids most workplaces from using employee loan histories to make decisions about work. How should an employer do? Employers who use consumers' reporting during the recruitment procedure should make sure that they provide candidates with the latest FCRAs.

In addition, before introducing a backgrounds review procedure, an employer should seek advice from their lawyer to make sure that their procedure complies with all state and municipal legislation.

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