Consumer inquiries refer to instances in which a consumer, also known as the candidate or employee, requests information regarding their completed consumer report. It is important to note that consumer inquiries are often mistaken for disputes. The procedures for addressing a consumer inquiry differs from the disputes process that is mandated by the Fair Credit Reporting Act (FCRA), which will be further explained in this article.
What is a Consumer Inquiry?
The majority of consumer inquiries involve questions regarding the information found on a consumer’s background report, or requests to update information after reviewing the completed report. Some common examples of consumer inquiries include, but are not limited to, the following situations:
- The consumer wants to know why their report contains flags.
- The consumer’s driving record returned a suspended license. After viewing their report, the consumer had their license reinstated. The consumer then requested a recheck of their driving record.
- A case was reported on the consumer’s criminal record search. After viewing their report, the consumer worked with an attorney and the court to get their case dismissed. The consumer then provided proof of the dismissal and requested a recheck of their criminal search.
Validity’s Process for Resolving Consumer Inquiries
The process for resolving a consumer inquiry can vary depending on the type of inquiry it is. The process may involve updating the driving record, criminal record, education or employment verification, or another order on the background report.
Depending on the nature of the inquiry, an email notification detailing the resolution may be sent to the organization that originally requested the background screening. Please be aware that not all inquiries will require an email notification. If any changes are made to the consumer’s report, an email notification will always be sent with the resolution details and a link to the revised report.
Our Consumer Inquiry team is available to answer questions related to the information on the consumer’s report. However, please be aware that the Consumer Inquiry team cannot answer any questions unrelated to the background screening process, or information on the consumer’s report. If the consumer has questions about the job position (e.g., qualifications, hiring decisions, eligibility for hire, etc.), we will redirect the consumer to the organization they applied to or are currently employed with.
Please note that Validity Screening Solutions does not make hiring or employment decisions on behalf of any employer. Additionally, Validity is not aware of decisions made regarding hiring or eligibility to work for any employer.
How do Disputes differ from Consumer Inquiries?
As mentioned above, the procedures for resolving a dispute are mandated under the FCRA. Therefore, the process is more formalized. Per the FCRA, Consumer Reporting Agencies (i.e., Validity) have five (5) business days to respond to a consumer’s request to dispute. If a dispute is opened, the Consumer Reporting Agency (CRA) has 30 calendar days to reach a resolution. The following steps are an overview of the process for dispute resolutions.
- The CRA sends a notice confirming receipt of the dispute to the consumer and the organization that originally requested the background screening.
- The CRA begins a reinvestigation of the disputed information.
- If a resolution is not reached within 30 days, the CRA will notify both the consumer and the organization of the delay and extend the deadline to 45 days.
- Upon completion of all findings, the CRA will proceed to make any necessary corrections or updates to the consumer report. If the findings confirm that the original results were accurate and complete, then no changes will be made to the report.
- After a resolution has been reached, the CRA will send another notice to the consumer and the organization notifying them of the dispute resolution. The consumer’s resolution notice will contain three (3) documents: a copy of their consumer report, a copy of the Summary of Your Rights Under the FCRA, and a copy of Remedying the Effects of Identity Theft.
The Pre-Adverse Action and Adverse Action Process
For those unfamiliar with the terms pre-adverse action and adverse action, pre-adverse action is the preliminary notice that must be sent to the consumer if the end-user (i.e., employer, organization) is considering taking an adverse employment action based in part of or in whole of information on the consumer’s report.
After the pre-adverse notice is issued, the end-user must wait a “reasonable amount of time” before sending the adverse action notice to the consumer. A “reasonable amount of time” is not explicitly defined under the FCRA. However, the Federal Trade Commission (FTC) has suggested five (5) business days is considered reasonable.There are certain jurisdictions that require a longer waiting period. Validity recommends consulting with qualified legal counsel to ensure compliance with applicable state and local laws.
Adverse action is the final notice of the end-user’s intent to take an adverse employment action against a consumer. Please be aware if you are planning to take an adverse employment action based in part of or in whole of information on a consumer’s report, the pre-adverse action notice must be sent prior to issuing the adverse action notice. Failure to issue a pre-adverse action notice and failure to wait a “reasonable amount of time” can open an organization up to a potential FCRA violation.
Many people are aware the pre-adverse action and adverse action process is to allow consumers the chance to dispute their consumer report. While the process does allow that opportunity, it also allows consumers the chance to thoroughly review their report, ask questions about the information on their report, or provide any additional information to the employer that may help them better evaluate the consumer’s fitness for the position.
How does the pre-adverse action and adverse action process relate to Consumer Inquiries?
Several of the inquiries we receive are from consumers who have received a pre-adverse action and/or adverse action letter. Oftentimes, the consumer has questions about the pre-adverse action or adverse action letter itself, in addition to questions regarding information on their consumer report.
Another common question we receive from End-Users is in regard to the consumer filing a dispute after they’ve received the pre-adverse action notice. End-Users ask, should they wait for the dispute to complete prior to issuing the adverse action notice, even if the recommended waiting period has passed? Our answer is yes. Validity recommends End-User to wait for the dispute resolution before issuing the final adverse action notice. Depending on the resolution, it’s possible we may make changes to the consumer’s report that the End-User may want to review before issuing adverse action.
Final Takeaways
- Consumer Inquiries are any time a consumer inquires about information on their report. Disputes are any time a consumer states there is information on their report that is inaccurate or incomplete. All disputes are consumer inquiries, but not all consumer inquiries are disputes.
- We may send an email notification to the organization that originally requested the background screening depending on the nature of the inquiry. Please note that not all inquiries will require a notification.
- If a consumer files a dispute, there are formal procedures Validity must follow as the disputes resolution process is mandated by the FCRA.
- If an organization is considering taking an adverse employment action based in part of or in whole of information on the consumer report, they must issue a Pre-Adverse notice and wait a “reasonable amount of time” before issuing the Adverse Action notice.
- While Validity cannot answer questions related to job qualifications, hiring decisions, or eligibility to work, our Consumer Inquiry team is available to answer any questions related to information on the consumer’s report.
Our Consumer Inquiry is available by phone at 866.256.0624 or by email at consumerinquiry@validityscreening.com.
