Pre-Adverse/Adverse Action

Can I give my applicant/employee a copy of their report?

Yes, you may give the applicant a copy of their consumer report. In fact, if you are making an employment decision based on adverse information contained in the consumer report, you are required to:

  • Give them a copy of their report.
  • Give them a copy of "A Summary of Your Rights under the Fair Credit Report."
  • Follow Pre-Adverse and Adverse Action procedures.


What is Adverse Action?

FCRA defines adverse action as “a denial of employment or any other decision for employment purposes that negatively affects any current or prospective employee”. In other words, not hiring, not promoting or not retaining.


What is a Pre-Adverse and Adverse Action Letter

A Pre-Adverse Action letter is used to inform the consumer that you, the employer, may take adverse action based on the information found in their consumer report. The purpose of the Pre-Adverse Action letter is to allow the consumer to review the report and to rectify any incomplete or inaccurate information prior to the final hiring decision being made. The Pre-Adverse Action letter should be given with a copy of their report and a copy of “A Summary of Your rights under the Fair Credit Report. The FCRA requires that the employer wait a reasonable amount of time after sending the Pre-Adverse Action letter before making a final decision. After the waiting period, you should send an Adverse Action letter stating that a final employment decision has been made.

Sample Pre-Adverse Action and Adverse Action letters can be found by logging into the secured Users’ portal.


Where can I find "Your Summary of Rights"?

The "Your Summary of Rights" document may be found here.