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Notice of adverse action
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Notice of adverse action: What is it?
If your business uses credit history and related information to evaluate candidates for employment or promotions, you need to disclose this. A notice of adverse action letter lets them know you’re checking their credit, and if you choose, gives them a chance to respond to what you discover. Pick "pre-action" if you haven’t yet checked, and "post-action" if you have and are inviting them to challenge your findings.
So, what goes into a Notice of Adverse Action:
Who you're sending the letter to
Have their name and contact info ready.
Why you're checking their credit
Know the reason for the credit check, as well as the contact info of the credit reporting agency.
Decide if you will give the recipient a chance to review and respond to the information about them.
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