Now and then, a background check may cause you to consider taking adverse action. This month, we’re exploring the basics regarding this process and how Backgrounds Online can help. A thorough process should be in place to ensure informed decisions are made and the proper communications are executed according to the Fair Credit Reporting Act (FCRA).

Pre-Adverse Action

A pre-adverse notice informs the recipient that a background check included information which could disqualify them from obtaining a position in your organization. The candidate must be given a “reasonable amount of time” (typically, 5 business days) to review the report and look for potential inaccuracies.

Per the FCRA, a pre-adverse notice must be accompanied by:

• A copy of the person’s background check.
• Contact information for the Consumer Reporting Agency (CRA) that compiled the report (Backgrounds Online).
• A Summary of their rights under the FCRA.

It is best practice to include a list of items from the background check that resulted in the pre-adverse action. This adds transparency, helps the recipient understand why they received the letter, and informs them of their right to file a dispute.

Consumer Disputes

Every background check undergoes a thorough quality assurance procedure to help ensure maximum possible accuracy. However, your candidate has the right to dispute the findings of their background check if they feel something was incorrectly reported. In this scenario, Backgrounds Online must be notified as soon as possible using the contact information provided within the pre-adverse action notice. At this time, the adverse action process must be paused while we conduct a reinvestigation.

Candidates might file disputes because data was reported incorrectly by a courthouse, they believe an offense is outdated or a variety of other reasons. Whatever the source for the dispute may be, our team will operate diligently and efficiently to finalize the reinvestigation as quickly as possible. We may inform you that the original results were correct, but if there is something we cannot confirm or we find that information was misreported, then we will produce an updated background check for your consideration.

Completing an Adverse Action

Whether the original background check results stand accurate or a dispute has been filed and resolved following the pre-adverse notice, you may continue with finalizing the adverse action.

Per the FCRA, these communications must include:

• An adverse action letter.
• Contact information for the CRA that compiled the report (Backgrounds Online).
• A Summary of their rights under the FCRA.

At this point, you have successfully finalized the adverse action process per the Fair Credit Report Act. We hope you’ve found this information helpful and wish you success in finding your next accomplished team member.