The University of Tennessee, Knoxville

Tennessee County Municipal Advisory Service

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Fair Credit Act Summary

Reference Number: MTAS-1913
Tennessee Code Annotated
Reviewed Date: February 23, 2016
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If your city routinely conducts credit checks on applicants or employees, you may want to consider only conducting the checks on positions involving money (finance department employees, police officers, etc…). Then be sure to provide notice and follow the guidelines when an adverse decision is made.

The CFPB has issued updated FCRA notices that employers and consumer reporting agencies must use when conducting background checks on employees or applicants. The revised form, effective as of January 1, 2013, are available in Appendices K, M and N at the end of Title 12 of the Code of Federal Regulations, Part 1022 and are substantively the same as the old forms. Each form was revised to replace references to the FTC with reference to the CFPB and to provide a link to the new website. They include:

  • Appendix K to Part 1022 - Summary of Consumer Rights,
  • Appendix M to Part 1022 - Notice of Future Responsibilities, and
  • Appendix N to Part 1022 - Notice of User Responsibilities.

The Summary of Consumer Rights is the form used mostly by employers, most notably when obtaining "investigative consumer reports" and sending pre-adverse action letters.

Responsible: