What is an Adverse Action?
The Fair Credit Reporting Act (FCRA) is federal legislation that promotes the accuracy, fairness, and privacy of consumer information among consumer reporting agencies. With the FCRA, consumers have the opportunity to dispute inaccuracies and protect themselves. Any action(s) performed as a result of information found in a background check that negatively affects one's employment (e.g. employment, promotion, termination, etc.) is considered an adverse action. With the FCRA, the employer is required to give the affected individual notice with the name and contact information of the agency that performed the background check in case the individual wishes to dispute any items found on the report.
What Can Wolfe Do?
For background checks facilitated by Wolfe, they will not send adverse action notices on the employers’ behalf automatically. If you wish to have Wolfe send adverse action notices for you, it can incur a separate fee on top of your existing background check package. For more information, please reach out to your account manager.
The adverse action service steps have been outlined below:
- Once the decision to apply adverse action to one of your applicants has been made, you will begin the process by sending an email to email@example.com with the subject line “Adverse Action" with the applicant’s name and email address in the email.
- Wolfe will prepare the Pre-Adverse Action package to be mailed via USPS and emailed (if the applicant's email is listed).
- If the adverse action is not stopped by you, the Final Adverse Action letter will be sent on the 5th business day following the initial Pre-Adverse Action.
- A copy of the Pre-Adverse Action package and the Final Adverse Action letter is attached to the applicant’s order in the Wolfe System.
- You will also receive a weekly Adverse Action Report when you have any active adverse action. The report will note the Pre and Final Adverse Actions sent along with the date.
- Wolfe will update you on any disputes by applicants.