“Adverse actions” include all employment actions affecting consumers that can be considered to have a negative impact – such as denying employment or promotion. Before taking an adverse action, the user must provide a copy of the report to the consumer as well as the document titled, “A Summary of Your Rights Under the Fair Credit Reporting Act.” This notification that an adverse action is being considered is sometimes referred to as a “pre-adverse action notice.”
After sending the pre-adverse action notice the user is required to give the consumer a reasonable amount of time to question and correct any information contained in the report. Although not specifically stated in the FCRA, five days has been deemed to be a reasonable amount of time. If after waiting for the consumer to respond the user takes the adverse action and the decision to do so is based at least in part on information contained in a consumer report, the user must notify the consumer.
This notification is typically referred to as the “post-adverse action notice.” The notification may be done in writing, orally, or by electronic means. It must include the following:
- 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 consumer’s right to obtain a free disclosure of the consumer’s file from the CRA if the consumer makes a request within 60 days.
- A statement setting forth the consumer’s right to dispute directly with the CRA the accuracy or completeness of any information provided by the CRA.