As mandated by the Consumer Financial Protection Bureau and the Federal Trade Commission, any employer that obtains a credit report from a consumer reporting agency on a job applicant or employee faces additional notice requirements to the applicant or employee, effective September 21, 2018.
As mandated by the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission,
consumer reporting agencies must provide consumers with a Summary of Consumer Identity Theft Rights Form informing them of their rights to obtain a security freeze on their credit report.
The Fair Credit Reporting Act does not prevent an employer from conducting third-party credit checks so long as the employer obtains the applicant's written consent and complies with the FCRA's notice requirements. However, some states have gone beyond federal law and placed restrictions on when employers can conduct credit checks of job applicants or employees for screening purposes to certain types of positions.