ADVERSE ACTION LETTERS
The following are sample forms you may use for your adverse action process. Adverse Action is considered any denial of benefits, such as denial of job, promotion, or dismissal or any decision that adverse affects an employee or applicant.
When considering taking adverse employment action (including, but not limited to, terminating employment, or denying employment or promotion, etc.) The FCRA has specific requirements you must follow, including:
1. Pre-Adverse Action: First, if you intend to take adverse action based on consumer report information (such as criminal records checks, credit checks, employment verifications, etc.) provided by LexisNexis, you must first notify the individual. A sample pre-adverse action letter is enclosed for your convenience. With the pre-adverse action letter, the employer must provide the individual with a copy of the Summary of Your Rights document(s) and a copy of the consumer report provided by LexisNexis. The letter must include LexisNexis’s contact information and a notice that the applicant/employee may dispute the accuracy or completeness of information in his/her report.
2. Waiting Period: The employer must then wait a “reasonable period” of time to allow the applicant/employee to dispute any information in the report. The Federal Trade Commission has opined that 5 days is generally reasonable.
3. Adverse Action: After the waiting period expires and if there is no dispute, you can take adverse action. A sample final adverse action letter is enclosed. To be in compliance with FCRA guidelines, it is imperative that your communication includes LexisNexis’s toll phone number, fax number and address, as well a statement that LexisNexis did not in any way participate in the decision not to hire you to work for (Company Name) and is unable to provide you with specific reasons as to why we are choosing not to consider you for employment with (Company Name).
We strongly urge you to consult your legal counsel regarding any questions you may have concerning this information and your compliance with the law. Thank you for your assistance in ensuring your organization is in compliance with the FCRA. Please contact our Client Services department if you have any questions.
PRE-ADVERSE ACTION LETTER
Date
Dear _______________________:
On [Date], you authorized [Employer] to obtain consumer reports and/or investigative consumer reports about you from a consumer reporting agency. The company is considering taking action in whole or in part based on information contained in this report. Enclosed please find:
(1) a copy of the report we obtained from:
LexisNexis Screening Solutions Inc.
Consumer Center
P.O. Box 105108
Atlanta, GA 30348-5108
1-800-845-6004
(2) a summary of your rights under the Fair Credit Reporting Act, and if applicable,
(3) Article 23-A of the New York Correction Law.
You may identify any errors, inaccuracies and/or otherwise respond to or dispute the accuracy or completeness of the information contained in the report within five business days from the date of this letter. If you choose to do so, you must contact [Employer Contact Information] . If you wish to dispute the accuracy of the information in the report directly with the consumer reporting agency (i.e., the source of the information contained in the report), you should contact the agency identified above directly.
Sincerely,
[Employer]
Enclosures: LexisNexis Background Report
Summary of Rights
ADVERSE ACTION LETTER
Date
Dear _______________________:
We regret to inform you that [Employer] [(... is unable to offer you employment), or (... will terminate your employment effective _______), or (... has decided not to offer you a promotion)].*
This decision was based in whole or in part on information contained in a report from
LexisNexis Screening Solutions Inc.
Consumer Center
P.O. Box 105108
Atlanta, GA 30348-5108
1-800-845-6004
A copy of this report was previously given to you. LexisNexis did not participate in this employment decision and is unable to supply you with specific reasons why the decision was made. Under Section 612 of the Fair Credit Reporting Act, you have the right to obtain a free copy of the report if you submit a written request to the agency identified above no later than 60 days after you receive this notice. Under Section 611 of that Act, and state law you also have the right to dispute the accuracy or completeness of any information in the report by contacting the consumer reporting agency above.
Sincerely,
[Employer]
Adverse Actions Letters 2013