FTC Defers to CFPB by Rescinding FCRA Model Forms and Disclosures

The Federal Trade Commission (“FTC”) recently rescinded several Model Forms and Disclosures related to the Fair Credit Reporting Act (“FCRA”), determining they are no longer necessary.  As we wrote about last Fall, [“Fall” hyperlink to CEJ and RTQ HELP blog article dated September 21, 2018] this change is the result of the Consumer Financial Protection Bureau (“CFPB”) issuing its own model forms and disclosures.  The FTC forms that have been rescinded and the corresponding CFPB forms that now apply are as follows:

• Rescinded FTC Form: Appendix A – Model Prescreen Opt-Out Notices | Corresponding CFPB Form: Appendix D to Part 1022 – Model Forms for Firm Offers of Credit or Insurance.
• Rescinded FTC Form: Appendix D – Standardized Form for Requesting Annual File Disclosures | Corresponding CFPB Form: Appendix L to Part 1022 – Standardized Form for Requesting Annual File Disclosures.
• Rescinded FTC Form: Appendix E – Summary of Identity Theft Rights | Corresponding CFPB Form: Appendix I to Part 1022 – Standardized Form for Requesting Annual File Disclosures.
• Rescinded FTC Form: Appendix F – General Summary of Consumer Rights | Corresponding CFPB Form: Appendix K to Part 1022 – Standardized Form for Requesting Annual File Disclosures.
• Rescinded FTC Form: Appendix G – Notice of Furnisher Responsibilities | Corresponding CFPB Form: Appendix M to Part 1022 – Standardized Form for Requesting Annual File Disclosures.
• Rescinded FTC Form: Appendix H – Notice of User Responsibilities | Corresponding CFPB Form: Appendix N to Part 1022 – Standardized Form for Requesting Annual File Disclosures.

Furthermore, the FTC has re-designated Appendix B – Model Forms for Risk-Based Pricing and Credit Score Disclosure Exception Notices as appendix A, and Appendix C – Model Forms for Affiliate Marketing Opt-Out Notices as appendix B.

Covered entities should now look to the corresponding forms issued by the CFPB to obtain the appropriate model forms and disclosures.

The FTC also announced it is amending several of its rules so that they refer to the applicable CFPB Model Forms and Disclosures.  These amendments address references to the forms and disclosures in the Risk-Based Pricing Rule (16 CFR part 640), and the Affiliate Marketing Rule (16 CFR part 680).

In light of these recent changes employers and background check companies should seek advice from their legal counsel to ensure their background check process and forms they provide comply with the appropriate standards.