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ARTICLE · 23 DECEMBER 2024

AI And Other Decision-Making Tools: Does The Fair Credit Reporting Act Apply?

Jackson Lewis P.C.
Jackson Lewis P.C.
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Jackson Lewis P.C.

Jackson Lewis P.C.

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The Consumer Financial Protection Board (CFPB) recently issued guidances titled Consumer Financial Protection Circular 2024-06: Background Dossiers and Algorithmic Scores for Hiring...

United StatesEmployment and HR

The Consumer Financial Protection Board (CFPB) recently issued guidances titled Consumer Financial Protection Circular 2024-06: Background Dossiers and Algorithmic Scores for Hiring, Promotion, and Other Employment Decisions | Consumer Financial Protection Bureau and Consumer Financial Protection Circular 2023-03: Adverse action notification requirements and the proper use of the CFPB's sample forms provided in Regulation B | Consumer Financial Protection Bureau. The guidances remind employers that certain decision-making tools and resources including tracking devices and AI algorithmic services used for employment purposes could create Fair Credit Reporting Act (FCRA) compliance issues.

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