WASHINGTON, D.C. — Reps. Madeleine Dean (PA-04) and Trey Hollingsworth (IN-09) introduced the Clarity in Consumer Disclosures Act. This legislation will direct the Consumer Financial Protection Bureau (CFPB) to create clear, plain-language model forms for consumer reports so that employers can fulfill the requirements of the Fair Credit Reporting Act (FCRA).
Under the FCRA, employers may only use consumer reports for employment purposes if they follow strict consumer disclosure and certification requirements. However, there is currently no uniform direction for the content or format of such reports. The result is confusion for employers and consumers, as well as numerous lawsuits.
“Clear and comprehensible guidance will help employers and employees,” Rep. Dean said. “This is a commonsense change to ensure that our businesses meet FCRA and State requirements and avoid unnecessary confusion.”
“Everywhere I go across the District I hear about jobs: whether it’s employers looking to hire or Hoosiers looking for work. Applying for jobs should be as simple as possible. The Clarity in Consumer Disclosures Act increases transparency for Hoosier applicants in the hiring process and protects Hoosier businesses by establishing standardized regulations for issuing background checks,” Rep. Hollingsworth said.
The Clarity in Consumer Disclosures Act is endorsed by the Professional Background Screening Association (PBSA).
“The Clarity in Consumer Disclosures Act will have significant benefits for consumers, job seekers and employers alike. The Professional Background Screening Association applauds Reps. Dean and Hollingsworth for introducing this important, bipartisan legislation,” a PBSA spokesperson said.
The CFPB is directed to issue a report to Congress no later than six months after issuing the model forms and language detailing their methodology and analyzing the use of the model forms and language.
Rep. Madeleine Dean is a mother, grandmother, attorney, professor, former four-term member of the Pennsylvania House of Representatives, and U.S. Representative for the Fourth District of Pennsylvania.
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