Along with our employment applications we include a separate document for them to sign that authorizes us to get their credit report. In the past we have waited until we had scheduled an interview before getting their credit report as we didn’t see the need to get one if we didn’t plan to interview them. Sometimes after getting the report we realized we wouldn’t be offering them a job and regretted that we had already scheduled the interview.

Recently we decided if we were interested in interviewing someone that we would get their credit report before scheduling their interview. That way if we thought the credit report would prevent them from working here then we wouldn’t even schedule the interview.

My question is do we need to send the adverse action notice to anyone that we’ve pulled a credit report and that information caused them to not even be offered an interview or do we only need to send it to those that were interviewed and then not chosen due to their credit report? In other words does the adverse action go only to those that were not offered jobs or also to those that were not even offered interviews after getting their credit report?

Read Section 604(b)(3) of the Fair Credit Reporting Act. I don't think there is any reference to interviews, just if your action was based in whole or in part on the report.

k) Adverse Action
(1) Actions included. The term “adverse action”
(A) has the same meaning as in section 701(d)(6) of the Equal
Credit Opportunity Act; and
(B) means
(i) a denial or cancellation of, an increase in any charge for,
or a reduction or other adverse or unfavorable change in
the terms of coverage or amount of, any insurance, existing
or applied for, in connection with the underwriting of
insurance;
(ii) a denial of employment or any other decision for employment
purposes that adversely affects any current or
prospective employee;

Would your decision not to interview the individual be an "adverse action" pursuant to this section? I think so.

The purpose of the notice is to make certain the consumer knows that something said by a CRA has had an impact on his life and, if what's being said is wrong, the chance to correct it. If you don't tell them, they may never know what the problem is.

Thanks for the help!