Question: When we turn down an employment applicant because of information in their credit report, is there a time limit by which we have to send the applicant an adverse action notice?
Answer: The Fair Credit Reporting Act requires you to send a notice to any applicant for employment under the circumstances you describe. However, unlike the Equal Credit Opportunity Act, the FCRA does not contain time limits or requirements for the notice. The Federal Trade Commission is the lead agency for interpreting the FCRA however that agency does not have authority to issue regulations for FCRA. They have issued a staff opinion that five days is a reasonable time for giving this notice. It is a good idea to follow that advice, even though it is not binding. If you are looking for an outside limit, the ECOA's 30-day requirement would be pertinent.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
