Employment Denied

Posted By: SouthoftheBorder

Employment Denied - 04/23/13 09:35 PM

I have done a lot of searching today to find out what or what not goes out to a person denied employment. I have come up with "Prelimary Notice of Adverse Action" and a 'Final Notice of Adverse Action". The first & final notice should include "Summary of your rights under the Fair Credit Reporting Act" Then I read from FCRA
before taking any adverse action based in whole or in part on the report, the person intending to take such adverse action shall provide to the consumer to whom the report relates
(i) a copy of the report; and
(ii) a description in writing of the rights of the consumer under this title, as prescribed by the Bureau under section 609(c)(3).3
HUH? a copy of the report? I am very frustrated - could someone please help me with the getting the proper adverse action notice to an employee applicant?
Posted By: Kathleen O. Blanchard

Re: Employment Denied - 04/23/13 09:36 PM

Did the bank order a credit report?
Posted By: rlcarey

Re: Employment Denied - 04/24/13 01:23 PM

FYI - If you are specifically ordering employment credit reports, the credit reporting agency usually includes the required disclosures to mail to the applicant with the report.
Posted By: SouthoftheBorder

Re: Employment Denied - 04/25/13 06:40 PM

WOW - that is good to know! I'll have to find out why we are not ordering employment reports.

PS - FDIC wanted to see the notice(s).
Posted By: biz

Re: Employment Denied - 08/06/13 03:20 PM

Probably stupid questions but . . . .
I see throughout several posts where you indicate that before taking adverse action, we need to . . . . and that adverse action would include filling the position with someone else. Would you mind walking me through a time line scenerio where you have multiple applicants for one position. Are we really expected to not give notice of hiring and filling the position to the "good egg" until the "bad egg" has been notified and given time to dispute his/her credit report? Can this really hold us up from hiring and filling the position with the person we really want?

And if we had multiple applicants, and we hire one of three because s/he's the best candidant and not the other two not because of their credit-even though they had spotty credit-but because the one was better qualified-do we still need to send all the notices before taking adverse action?

Posted By: biz

Re: Employment Denied - 08/06/13 08:05 PM

Posted By: rlcarey

Re: Employment Denied - 08/07/13 05:02 PM

(3) Conditions on use for adverse actions.

(A) In general. Except as provided in subparagraph (B), in using a consumer report for employment purposes, before taking any adverse action based in whole or in part on the report,......

Adverse action based on a credit report is required, as with lending decisions. If the decision was not based in whole or in part on the report, an adverse action notice is not required.

Spotty-credit? If you are using credit reports as part of your employment processes, there should only be pass or fail - if you act subjectively, you are digging yourself into a bad hole.