(Taken from MBI Newsletter, November 2013)
“In the Know about Adverse Action”
What is Adverse Action?
Adverse Action is a process by which an employer must adhere to per FCRA guidelines if denying placement to an applicant due to their consumer report.
There are 2 steps:
Step 1: Pre-Adverse Action -This is the initial notification if adverse information is found. The employer will send the Pre-Adverse letter, copy of applicant’s report, and a copy of Summary of Rights to the applicant. The applicant then has 5 business days to dispute the information found on their report with the CRA (Consumer Reporting Agency or the agency that provided the information to the employer) prior to a final decision being made.
Step 2: Adverse Action – This is the final step after 5 business days and no disputes have been made. Consists of an adverse action letter sent by the employer to the applicant informing them that a final decision has been made that they will not be hired, promoted, etc.
It is very important that your company has an Adverse Action policy in place if you are in a HR position. This process protects you as an employer and also benefits the applicant as well.
MBI can handle this entire process for you. Contact me at 866-275-4624 ext: 118 and I will be more than happy to discuss the process with you!
Bethany Thompson
Operations Manager
MBI Worldwide