What is the process I must follow when denying an applicant for employment based on the contents of a TruDIligence report?

Section 604 of the Fair Credit Reporting Act (FCRA) establishes specific guidelines that must be followed when an applicant is going to be denied employment based on the contents of a TruDiligence report. 

Before taking adverse action you must provide the applicant:

1.      a copy of the pre-adverse action notice

2.     a copy of the FCRA summary of rights

3.     a copy of the TruDiligence report

Then according to the FCRA, you must allow a “reasonable” amount of time for the applicant to dispute the contents of the report if they wish.  Although the FCRA does not specify exactly what a “reasonable” amount of time is, the general consensus among the legal community is 5 business days.

If at the end of 5 business days, the applicant has failed to dispute the contents of the report you must provide:

1.     a copy of the adverse action notice

All of the required FCRA forms and notices are available on the TruDiligence website at: http://www.trudiligence.com/downloadforms.aspx