Volume 4, Edition 3, March 2008

Congratulations! You chose the correct answer.

(d). Under the FCRA, the end-user is responsible for complying with the adverse action requirments if it will be taking adverse action against a consumer based in whole or in part on the consumer report. If a CRA contracts with an end-user to provide this service, the CRA should follow the process required under the FCRA. When an applicant for employment (or an employee being screened during employment) will be subject to adverse action, the FCRA requires that the applicant or employee be notified that the company may take adverse employment action and given a copy of their consumer report along with a copy of the FTC's Summary of Rights. 15 U.S.C. 1681 b(b)(3). This notification must inform the employee or applicant of his or her right to dispute the information in the report. The FCRA then requires that the employer wait a "reasonable" amount of time and then inform the employee or applicant that the adverse action decision has been made. The FTC has opined that a resonable amount of time is five days.


Disclaimer Statement: All information presented is for information purposes only and is not intended to provide professional or legal advise regarding actions to take in any situation. Advertisements are presented for information and marketing purposes only and the National Institute for Prevention of Workplace Violence, Inc. makes no representations for any products or services that are promoted and accepts no responsibility for any actions or consequences that occur as a result of any purchases from advertisers.