Creative Services, Inc. Resource Center - FCRA Process

FCRA Process

Fair Credit Reporting Act (FCRA) Administration Program

Pursuant to the FCRA, Section 604(3), End-Users (Clients) have obligations to consumers (applicants/employees) when the End-User anticipates taking adverse action based in whole or in part on information contained within the consumer report. Complying with adverse action requirements is the End-User’s sole responsibility. End-Users are advised to refrain from questioning a consumer about information contained in his or her consumer report until after the consumer has been provided with the appropriate documents, as outlined below, and given adequate time to review.

Pre-Adverse Process

1. Send the following documents in person, by fax, secure email, or regular mail to consumer:

• Pre-adverse action letter (sample letter)
• Massachusetts Pre-adverse Action Letter (sample letter)
• Copy of the consumer report and/or iCORI * (if applicable)
• Copy of “A Summary of Your Rights Under the Fair Credit Reporting Act” published by the Bureau of Consumer Financial Protection
• Any other documents required by State or Federal law (if applicable):

2. Allow consumer (applicant/employee) time to review the information and dispute any information within report. The best practice is to wait a minimum of 5 business days before sending the final adverse action notice.
3. If a consumer disputes information contained within the report and/or otherwise notifies CSI that he or she disputes any portion of the report, and CSI determines that the dispute is not frivolous, CSI will conduct a reinvestigation.

• CSI’s Compliance Department will documents findings, revise the consumer report if necessary and will fax, email or mail the revised consumer report to the consumer with a copy of FCRA Summary of Rights and letter explaining consumer’s rights.
• CSI will copy End-User with reinvestigation correspondence.

Adverse Process

4. If final adverse action is to be taken the End-User is to provide the following documents to the consumer in person, by fax, secure email or regular mail:

• Adverse action letter (sample letter)
• Copy of the consumer report and/or iCORI (if applicable)
• Copy of “A Summary of Your Rights Under the Fair Credit Reporting Act” published by the Bureau of Consumer Financial Protection
• Any other documents required by State or Federal law (if applicable):

5. Document all steps taken to comply with regulations.

*IMPORTANT INFORMATION FOR iCORI USERS: If initiating the pre-adverse and/or adverse action based off the results in whole or in part on the iCORI, the End-User must explicitly identify the information within the iCORI report which is the basis for the action. In addition to the documents outlined above please ensure the following documents are provided to the applicant:

• The applicable Pre-adverse/Adverse action letter must identify the specific offense that is the basis for the action letter.
• Information Concerning the Process In Correcting a Criminal Record
• Copy of End-User’s BI Policy– under MA 803 CMR 2.15, employers who annually process five (5) or more background checks in MA are required to have a background screening policy (Sample Policy from DCJIS)
• Review DJCIS Guide to the updated DCJIS regulations

**Please note CSI does not make hiring decisions on our client’s behalf, therefore CSI cannot advise consumers of such decisions. **
**Failure to comply with these guidelines is in violation of the End-User’s contract with CSI as well as in violation of federal law.**

Did you know that CSI can manage this process for you?
End-Users can designate CSI to handle the administration of the pre-adverse and adverse letters on your behalf. Upon the End Users request, we will send the pre-adverse letter, adverse letter in addition to handling any re-investigations. Our Compliance Department manages this program to ensure full compliance with various federal and state laws. To take advantage of this service, please contact Client Services, clientservices@creativeservices.com or 508-339-5451. 

Still have questions?

Please contact Clients Services at 508-339-5451 or clientservices@creativeservices.com

The contents of this webpage  should not be construed as legal advice or a legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult a lawyer concerning your own situation and any specific legal questions you may have.