CFPB (Consumer Financial Protection Bureau)
The Consumer Financial Protection Bureau (CFPB) is a federal agency responsible for enforcing consumer protection laws, including the Fair Credit Reporting Act (FCRA). In employment background screening, the CFPB oversees how consumer reporting agencies (CRAs) and employers handle background information to ensure accuracy, transparency, and fairness in the hiring process.
Compliance note
- The CFPB enforces the Fair Credit Reporting Act (FCRA) and provides official model forms such as the “Summary of Rights Under the FCRA.”
- Consumer reporting agencies must follow CFPB regulations to ensure the accuracy and privacy of background check data.
- Employers must use CFPB-approved versions of the Summary of Rights and comply with disclosure, authorization, and adverse action requirements.
- The CFPB may investigate or fine employers and CRAs for improper handling, reporting, or disclosure of consumer information.
Related Terms and Posts
- FCRA (Fair Credit Reporting Act)
- Consumer Report
- Investigative Consumer Report
- Disclosure and Authorization
- Dispute and Reinvestigation
- Background Checks in 2025: What Employers Need to Know (Blog)
- Ensuring Legal Compliance in Retail Background Check Consent Forms (Blog)
- Adverse Action in Employment Background Checks (Blog)
Frequently Asked Questions
Q: What is the CFPB’s role in background screening?
A: The CFPB enforces the Fair Credit Reporting Act and provides guidance to ensure that employers and CRAs handle background check information fairly and accurately.
A: The CFPB enforces the Fair Credit Reporting Act and provides guidance to ensure that employers and CRAs handle background check information fairly and accurately.
Q: What documents does the CFPB provide for FCRA compliance?
A: The CFPB issues model documents such as the “Summary of Rights Under the FCRA” and “Notice to Users of Consumer Reports” to help ensure legal compliance.
A: The CFPB issues model documents such as the “Summary of Rights Under the FCRA” and “Notice to Users of Consumer Reports” to help ensure legal compliance.
Q: Can the CFPB take action against employers or background screening companies?
A: Yes. The CFPB can investigate, issue fines, or require corrective action for violations of federal consumer protection laws, including the FCRA.
A: Yes. The CFPB can investigate, issue fines, or require corrective action for violations of federal consumer protection laws, including the FCRA.
DISCLAIMER: The information provided in this glossary is for general informational purposes only and should not be construed as legal advice. While we strive for accuracy, EDIFY Background Screening does not guarantee that the definitions or explanations are complete, up to date, or error-free. Employers should always consult with competent legal counsel to ensure compliance with applicable laws and regulations.
Stay Updated with EDIFY Insights Newsletter
Get compliance tips, background screening updates, and HR best practices delivered straight to your inbox.
