What is the time frame where and adverse action should be mailed out for employment based on credit information? I default to Reg. B's 30 days but the FCRA does not say. And the employment function is not a credit transaction. I also posted this in the HR thread.

Any thoughts?

I believe that you have to send the notice out in sufficient time to allow the applicant to protest prior to you filling the position.

See 604(b)(3)(a) - you have to provide the adverse action notice and a copy of the credit report "before taking any adverse action based in whole or in part on the report".

That means if you fill the position prior to sending out the notice, you have already taken adverse action and that would be in violation of the regulation.

In these cases the pre-adverse action notice was sent, giving 60 days to dispute any of the findings in the credit report.

However, I do not think an actual adverse action notice was ever sent. Is an adverse action notice required if the applicant does not respond in 60 days (to dispute the credit report)?

Read the full text of the citation Randy gave you.

. . . . that adverse action has been taken based in whole or in part on a consumer report received from a consumer reporting agency; . . .


Remember the FCRA AAN is not the same as the ECOA AAN.

So section 615 of the FCRA applies to applicants for employment...In other words, we need to send them an AAN as outlined in section 615, correct? If so, part of the AAN under 615 is to disclose their rights to obtain a copy of the credit report - per section 604 a copy of the credit report and a summary of their rights would have been given before adverse action was taken. What am I missing here?

Just an FYI - If you contract with a credit report bureau to pull reports for employment purposes (a standard credit bureau contract normally does not give you that right), they normally print the required disclosures with the credit report. If you pull one for employment purposes, you have to send them a copy of the report "prior" to taking any adverse action. So, you have to send it to everyone as a standard practice.