Consumer ReportAny oral, written, or other pertinent communication of any information provided by the consumer reporting agency concerning a consumer’s credit standing and worthiness, character, personal characteristics, reputation and more that’s used, or expected to be collected and/or used in part or in whole, serving as a variable in establishing the applicant’s eligibility for employment.
Adverse ActionThis comes into play when employment is denied or another decision is made that has an adverse effect on the prospective or current employee. Are you FCRA compliant? Ask yourself the following questions.
- Do you send out adverse action letters? This is a must because compliance is mandatory for everyone.
- Do you use paper? If the answer is yes, you need to have an efficient process in place to track it, ensuring that the letter was actually sent out. It’s also important to use a mail service that’s traceable. You also need to ensure that the letters go out following the required timeline.
- Do you have easy access to your proof that the letter was sent? Be sure to have a system in place or use a consumer reporting agency that makes it easy to locate your adverse action documents.
- Do you know what to do if an applicant disputes the findings in their background check? If you run into this situation, you’re required to provide the appropriate dispute process to any job candidate that you denied employment too dependent on the adverse background check. If by chance the background check is determined to be in error it will need to be corrected. Once corrected, you’ll need to store it in a safe place, ensuring that it remains in compliance, minimizing the likelihood of a breach. In other words, all of the components of a company’s hiring cycle should be securely stored in one trustworthy location.