CFPB Warns Employers That Use of Third-Party Consumer Reports Must Be Fair
The CFPB issued guidance regarding “Background Dossiers and Algorithmic Scores for Hiring, Promotion, and Other Employment Decisions.” In the guidance, the CFPB warns that, like credit reports used by lenders to make lending decisions, third-party AI and background dossiers that convey scores about workers are often governed by the Fair Credit Reporting Act (FCRA) when used…