"...taking adverse action involving employment that is based in whole or in part on the consumer report..."

I'm stuck on the phrase "in part". What should be the trigger for saying that a poor credit report was a determining factor? If you pull a poor credit report and don't hire the person (because, say, someone else was more qualified) should you send the notice?

Thanks

While this is only an opinion, as I am not in the hiring department, I would think an adverse action notice is not requried. The rationale behind this being you did not use the credit report for a credit decision.

Thanks for your reply, I'm thinking though that if the report tiped the scales a little that you should....would you agree?

Another related question:
Does simply pulling a credit report trigger sending a "pre" notice and copy of the report, or only if you are going to take adverse action based on the report?

Thanks

If you use a credit report for a new applicant and decide to deny employment based on that credit report, you are required to send out the credit report copy first and then a letter telling them you're denying employment. We were written up a few years ago by the FDIC for a violation of this process.

So the process goes like this....

1)pull bad report
2)decide not to hire "based in whole or in part...."
3)send report and pre notice
4)send AAN

Can you just send the report and the notice at the same time?

While you may have to send the applicant a credit report and a letter telling them you are denying their employment, I still do not believe an adverse action is necessary. However, I will check the reg. to try and ascertain a definitive anser.

Before you pull a cr rept, give employee notice & permission to pull rept. If adverse action relating to employment purposes is taken, provide the applicant with a copy of the consumer report and disclosure of their rights under the act. Mail denial notice.

Copied and pasted from the Reg. itself.


Adverse Action Procedures.
If you rely on a consumer report for an "adverse action" - denying a job application, reassigning or terminating an employee, or denying a promotion — be aware that:

Step 1: Before you take the adverse action, you must give the individual a pre-adverse action disclosure that includes a copy of the individual's consumer report and a copy of "A Summary of Your Rights Under the Fair Credit Reporting Act" — a document prescribed by the Federal Trade Commission. The CRA that furnishes the individual's report will give you the summary of consumer rights.

Step 2: After you've taken an adverse action, you must give the individual notice — orally, in writing, or electronically — that the action has been taken in an adverse action notice. It must include:

1. the name, address, and phone number of the CRA that supplied the report;

2. a statement that the CRA that supplied the report did not make the decision to take the adverse action and cannot give specific reasons for it; and
a notice of the individual's right to dispute the accuracy or completeness of any information the agency furnished, and his or her right to an additional free consumer report from the agency upon request within 60 days.

Where did you find this section of the Reg where you cut and pasted? I could not find it. Thanks!

Where did you find this section in the Reg? where you did the cut and paste. I could not find it. Thanks!

off the top of my head, section 604 (a-I think) And I believe ABC copied and pasted as well as ad-libbed, so it's not word for word

thanks all for the responses, BTW. For anyone who is interested, the definition to "consumer report" pretty much sealed it for me.

Green is semi-correct in his/her assumption. The post is not verbatim from the reg., but I feel is somewhat eaiser to interupt. I will try and find the link for you JWong.

"Semi"???

It's 604(b) (not "a", my bad). click here then click on FCRA (with FACT Act amendments included) and scroll down to 604(b)

Yes, "Semi". Not all of it is me ad-libbing. Thanks for posting the link though, saved me the effort.