Do the CFPB’s changes to the FCRA model notices in appendices I and K of Regulation V change any disclosures that the bank makes to its customers or potential customers?

Yes, your bank will need to use one of the modified disclosures, but only in situations where your bank is taking an adverse action in an employment context.

The CFPB’s interim final rule modifies two notices required by the Fair Credit Reporting Act (FCRA): (1) the “Summary of Consumer Rights” (Appendix K), which must be provided by consumer reporting agencies, as well as an employer who takes an adverse action based in whole or in part based on information in a credit report, and (2) the “Summary of Consumer Identity Theft Rights” (Appendix I), which must be provided by a consumer reporting agency to a consumer who has reported possible fraud or identity theft.

If your bank has taken an adverse action for employment purposes based at least in part on information in a credit report, you must provide the updated “Summary of Consumer Rights” notice in Appendix K of Regulation V. However, as noted by the CFPB, it is likely that consumer reporting agencies will automatically provide the updated notice when sending credit report information to your bank for employment purposes.

For resources related to our guidance, please see:

FCRA, 15 USC 1681b(b)(3)(A) (“Except as provided in subparagraph (B), in using a consumer report for employment purposes, before taking any adverse action based in whole or in part on the report, the person intending to take such adverse action shall provide to the consumer to whom the report relates . . . a description in writing of the rights of the consumer under this subchapter, as prescribed by the Bureau under section 1681g(c)(3) of this title.”)

FCRA, 15 USC 1681g(c)(2)(A) (“A consumer reporting agency shall provide to a consumer, with each written disclosure by the agency to the consumer under this section (A) the summary of rights prepared by the Bureau under paragraph (1) . . . .”)

FCRA, 15 USC 1681g(d)(2) (“. . . if any consumer contacts a consumer reporting agency and expresses a belief that the consumer is a victim of fraud or identity theft involving credit, an electronic fund transfer, or an account or transaction at or with a financial institution or other creditor, the consumer reporting agency shall, in addition to any other action that the agency may take, provide the consumer with a summary of rights that contains all of the information required by the Bureau under paragraph (1), and information on how to contact the Bureau to obtain more detailed information.”)
CFPB, Interim Final Rule, 83 Fed. Reg. 47027, 47032 (September 18, 2018) (“Under the FCRA, employers must be provided a copy of the Summary of Consumer Rights disclosure by a consumer reporting agency before the consumer reporting agency furnishes a consumer report for employment purposes, unless the consumer reporting agency already provided a copy of the disclosure to that employer. The Bureau believes that, under the baseline, consumer reporting agencies will provide an updated copy of the Summary of Consumer Rights to employers once the Act takes effect.”)