The Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act Procedures:

Pre-Background Check:

  • The applicant must be provided with a release form and the Summary of Rights Under the FCRA

Post Background Check:

If an employer will not hire an individual based on data contained in the background check, the employer is required by law to send a pre-adverse action letter. If the employer will not make an adverse decision, the employer is not required to send a pre-adverse action letter. OK, MN and CA allow an applicant to request a free copy of their background check report. If an applicant resides in one of these states and requests a copy of their report, the employer must provide a copy of the report to the applicant.

Our customers can print a pre-adverse action letter from the ‘Select Disclosure or Form’ drop down menu on the ‘Results’ page for an applicant.

A follow up ’employment denial’ letter is not required, but can be sent as a courtesy if the employer wants to do so.

An employer does not have to use our letter, but they do have use some sort of letter which identifies the consumer reporting agency and address and telephone number of the consumer reporting agency. The applicant must also be told that they have a right to dispute the accuracy of their report with the consumer reporting agency. See our attached example. Also, an adverse action letter should include a copy of the report and must include the Summary of Rights under the FCRA.

Some employers protect themselves by sending a pre-adverse action letter to every applicant they screen. This is not required, but is a pretty good practice. We offer this service to employers for an additional $4.00 for every report.

Thank you,

Advantage Staffing