A standalone disclosure document must be provided to the consumer, signed by the consumer, and returned to the organization PRIOR to conducting a background check.

An Acknowledgement and Authorization document must be provided to the consumer, signed by the consumer, and returned to the organization PRIOR to conducting a background check. The Summary of Your Rights Under the Fair Credit Reporting Act and Remedying the Effects of Identity Theft documents should be given to the consumer along with necessary state-required notices and disclosures (if applicable).

Contact Validity Screening Solutions, a consumer reporting agency (CRA), to initiate the background check.

Pre-adverse action notification is required if the consumer will not be hired; will be demoted; is not eligible for a promotion; is terminated; etc. (not an all-inclusive list) based, in whole or in part, on information contained in a consumer report. The pre-adverse action letter and supporting documents must be given to the consumer prior to taking adverse action against the consumer and should not be submitted to the applicant until the entire consumer report has been completed. Provide the consumer with a pre-adverse action letter, A Summary of Rights Under the FCRA, Remedying the Effects of Identity Theft, a copy of the completed consumer report that contains the potentially adverse information, and all necessary state-required notices and disclosures (if applicable).

After sending a pre-adverse action notification, an organization must wait a “reasonable period” of time to allow a consumer to dispute the information in his/her report prior to the organization taking adverse action based on the report. The FCRA does not state what constitutes a “reasonable period” of time. Due to varying state laws and FTC opinion, Validity recommends waiting 5 – 10 business days (taking into account mailing time). The waiting period is to give the consumer an opportunity to identify errors, inaccuracies, and/or otherwise respond to the information contained in the report. Consider, on a case-by-case basis, those extenuating circumstances that would justify less time or require providing an individual with additional time Consultation with your legal team is highly recommended to tailor the waiting period to your company’s legal environment.

The final step in the adverse action process. Required by law to provide an adverse action notification to the consumer prior to taking any adverse action, based in whole or in part, on information contained in a consumer report. For use ONLY after satisfying the pre-adverse action requirements AND waiting period.