All end users of consumer credit reports are required by law to establish and maintain a federally required Red Flag Compliance Committee. POE recommends that our clients invite POE to be a member of your Committee and that your Committee meet at least once every six months.
POE recommends the Committee expand its mission to oversee:
- Red Flag Compliance
- Valid Authorizations & Valid Disclosures
- Adverse Action Notification
- Ban the Box Legislation
- Social Media Screening
- Criminal Records Tier System & Matrix
- Individualized Assessments
- Records Retention
We recommend that the initial meeting, at which POE is in attendance, include a review of existing Compliance Policies and creation of the new, ongoing, Compliance Committee Policies. There really is much work to be done.
Some of the issues, like Ban the Box Legislation, are living, breathing, concerns that change almost daily. Other issues concern the exploding number of Class Action law Suits, in which plaintiffs are claiming the defendant employers are using Authorizations and Disclosures which violate the FCRA, because they contain “extraneous information”.
POE is finalizing review of new Authorizations and Disclosures, prepared by Montserrat Miller, a Partner in the DC Law Office of Arnall, Golden & Gregory, LLP and these forms will be ready for distribution to our clients within the next two weeks.