The Fair Credit Reporting Act (FCRA) does not specifically comment on this issue, however, a reasonable length of time should be given before the employer makes a final decision – five business days is fairly common.

Remember, you have invested time and money getting the applicant to this point in your hiring process. It is in your best interest to not let a qualified candidate slip away.

After you have completed the pre-adverse action notice, and given the applicant time to dispute the information contained in the Consumer Report, the second and final step in the process is to send the applicant an adverse action letter. This letter must include the following information:

  • The name, address, and telephone number of the CRA (including a toll-free telephone number, if it is a nationwide CRA) that provided the report.
  • A statement that the CRA did not make the adverse decision and is not able to explain why the decision was made.
  • A statement setting forth the applicant’s right to obtain a free copy of the consumer report from the CRA if the applicant requests the report within 60 days.
  • A statement setting forth the applicant’s right to dispute directly with the CRA the accuracy or completeness of any information reported by the CRA.
  • An additional copy of the Federal Trade Commission (FTC) document “A Summary of Your Rights Under the Fair Credit Reporting Act.“

While the adverse action process may sound complicated and lengthy, understanding and following the above procedures will help ensure you remain in compliance with the Fair Credit Reporting Act.  For more information, read the complete text of the FCRA.

Clarifacts can handle this process for you or walk you through the steps of the process more in-depth.

Contact Clarifacts for more information.