Consumer Financial Protection Bureau (CFPB)

On September 12, 2018, the Consumer Financial Protection Bureau (CFPB) released a new disclosure form document for employers and background check companies. This form should begin to be used by Friday, September 21, 2018.

Fair Credit Reporting Act (FCRA)

The federal agency that is responsible for oversight and drafting the model forms required under the Fair Credit Reporting Act (FCRA) issued a revised form in an interim final rule on September 12, 2018. Employers and background check companies are required to provide the disclosure form to employees and job applicants at certain times under the FCRA. A failure to provide the correct notification can lead to significant exposure, including class action litigation.

In May, 2018, Congress passed the Economic Growth, Regulatory Relief, and Consumer Protection Act, in response to several high-profile data breaches. The new law requires credit reporting bureaus to provide consumers fraud alerts and unlimited free national security freezes and freeze releases, under certain circumstances. These are intended to make it harder for identity thieves to open accounts in a consumer’s name. The new law also amends the (FCRA) to exclude certain medical debts incurred by veterans in consumer reporting information. The law also establishes a new dispute process with respect to such medical debt. The law mandates employers and background check companies to provide a notice regarding the new security freeze rights whenever they would be required to provide a copy of the “A Summary of Your Rights Under the Fair Credit Reporting Act” or the “Summary of Consumer Identity Theft Rights” disclosure form.

Other Items to Note

VETS-4212 Federal Contractor Report

The window for all organizations required to file (government contractors and large organizations) began on August 1 and will close on September 30th, 2018. You may file online or print off the forms and email them into the agency.

Medicare D Letters

If your organization provides medical insurance that covers prescription medication, and it is a credible plan (meaning it covers as much or more than a Medicare D Plan would), you must inform all employees (or family members of employees on your plan) that may be eligible for Medicare Part D, that your plan is a credible plan. This communication, in letter form, must be delivered by October 15, 2018. This will serve as proof for these Medicare eligible recipients, that they do not need to carry and pay for a separate Medicare Part D plan. Although only Medicare eligible plan participants must be informed, we believe it is best to deliver the letter to all eligible plan members, to ensure no one is excluded.