Notice must identify the reporting agency, state that the agency did not make the decision, describe the right to a free report and to dispute, and in credit contexts disclose the score and key factors.
Employment adverse action requires pre-action notice.
Alternative Names:
FCRA Adverse Action|Adverse Action Disclosure
Why it Matters?
Employment adverse action requires a two-step process, with pre-adverse action notice including the report and a summary of rights before the decision takes effect, and failure to provide that opportunity to respond is the most litigated FCRA employment violation. Timing between the pre-adverse and final notices must be reasonable, and courts have found periods under five business days inadequate in some circumstances.
Frequently Confused with
Related terms
Frequently asked questions
What does employment adverse action require?
How much time must elapse?
