The Consumer Financial Protection Bureau issued a circular that said that companies using third-party consumer reports must follow Fair Credit Reporting Act rules.
Details: The CFPB said that employers that use consumer reports—both when hiring workers and for subsequent employment purposes—must comply with FCRA obligations, including:
The requirement to obtain a worker’s permission to procure a consumer report.
The obligation to provide notices before and upon taking adverse actions.
A prohibition on using consumer reports for purposes other than the permissible purposes described in the FCRA.
