Revised Fair Credit Reporting Act Forms Became Mandatory in January 2013

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Texas firm specializing in background searches reminds businesses of new federal changes in background disclosure forms. Tenantbackgroundsearch.com says the new forms became effective in January 2013 and must be in use now.

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a person or business conducting a background check on an applicant must first provide a disclosure form and get the applicant’s written permission prior to the check being done

The owner of TenantBackgroundSearch.com advised landlords to ensure they are using the new Fair Credit Reporting Act (FCRA) forms which became mandatory in January 2013. Speaking for the web-based business, Jeff LeVan said, “In 2010, President Obama signed a new law shifting oversight of the FCRA from the Federal Trade Commission to the Consumer Financial Protection Bureau (CFPB), a newly-created entity that will oversee the act and offer legal guidance as to its application. That change brought with it a new Summary of Rights form that must be used by anyone conducting background checks by third party vendors, which would include landlords running searches on tenant applicants.”

According to the FCRA, a person or business conducting a background check on an applicant must first provide a disclosure form and get the applicant’s written permission prior to the check being done. This applies to a credit check, as well as other background searches that include character, living styles, personal character traits, etc. If the firm ordering the background check decides to take what the government refers to as “adverse action” based on the report’s findings, then the ordering firm must provide a copy of the report to the person along with a Summary of Rights. This document informs the person what recourse they have in correcting any old or inaccurate information as well as what to do if they are a victim of identity fraud and which government agency to contact for specific industries.

LeVan says the new form became effective Jan 1 of this year and shows the change of oversight from the Federal Trade Commission to the CFPB. “It’s more of a compliance technicality than a change,” said LeVan. “But it’s important that we all use the right paperwork to avoid any rights violations and to ensure we’re operating in full compliance with federal law.”

TenantBackgroundSearch.com is an internet business that performs comprehensive background checks on potential renters to assist landlords in meeting legal requirements as well ensuring accurate financial reports. Report topics include credit, national criminal database, sexual offender database, Patriot Act search, bankruptcy, foreclosures, medical collections, employment summary, known aliases, past addresses and eviction history. Located in Dallas, the firm has a national clientele.

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Jeff LeVan
Tenant Background Search
214-519-8243
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