Resource Center

The Commencement of the FCRA’s Adverse Action Process

Question: When does the Fair Credit Reporting Act (FCRA)’s adverse action process begin to apply?

Response & Analysis:

The FCRA’s adverse action process begins to apply as soon as you receive any information from a consumer reporting agency (CRA) that could be used in an employment decision.

Employers often order consumer reports with several parts or components, such as criminal searches, employment verifications, credit checks or a number of other possible applicant screening services. When an employer orders a consumer report that consists of several components, some of those searches or verifications may return results sooner than others. Some CRAs allow employers to view the results of individual components of the consumer report as they are completed even though the report as a whole is not yet complete.

When a specific part or component of an in-process consumer report is viewed, the FCRA still applies because the information falls within the FCRA’s definition of a “consumer report.”

Thus, anytime an employer is going to use any information received from a CRA—either in whole or in part—to make an employment decision, the employer must follow all FCRA requirements, including the pre-adverse and adverse action notification processes.

All Rights Reserved © 2017 Business Information Group, Inc.
This document and/or presentation is provided as a service to our customers. Its contents are designed solely for informational purposes, and should not be inferred or understood as legal advice or binding case law, nor shared with any third parties. Persons in need of legal assistance should seek the advice of competent legal counsel. Although care has been taken in preparation of these materials, we cannot guarantee the accuracy, currency or completeness of the information contained within it. Anyone using this information does so at his or her own risk.

Even our RFP PROCESS is state-of-the-art.

Take a look

What our clients are saying

We cannot express enough how much we have enjoyed working with BIG! It has really benefitted our processing and ease of doing business!

Licensing and Registration Manager
Investment and Insurance Company

I enjoy collaborating with BIG, and know that if I have to reach out with a question/concern, a positive attitude with a willingness to find resolve is on the other side of an email or a phone call.

Human Resources Administrator
Global Financial Services Firm

You have been the most professional and most helpful business partner that I have ever been associated with — always there to assist us and with rapid turnaround times.

Principal Consultant
Major Professional Services Network

I am confident whenever we add a product with your company that I will have a good experience.

Division Manager
Insurance and Financial Services Agency

We have received superior service and we know this is what you and your team strive for. We are grateful for the dedication, level of professionalism and effort shown.

Large Insurance Agency

You are leaving

Ok, Continue Cancel