Pre-Adverse Action Letter

The Fair Credit Reporting Act requires employers to notify an applicant or employee if information obtained from a consumer reporting agency will be used to initiate an adverse action such as denial or termination of employment. This notification is done in letter form, includes all the necessary contact information and should be provided to the subject of the report with sufficient time for them to dispute the information before the adverse action is taken. The Pre-Adverse Action Letter is made part of the final report, which must also be given to the subject, and includes a copy of the consumer’s Summary of Rights.

Adverse Action Letter

The Fair Credit Reporting Act requires employers to notify an applicant or employee of adverse action taken in response to information obtained from a consumer reporting agency. This notification follows the Pre-Adverse Action Letter is done in letter form after the subject has had ample time to respond. It includes the necessary contact information and is made part of the final report, which must also be given to the subject along with a copy of the consumer’s Summary of Rights.