Page 14 - PCCAJournal3rdQuarter2011

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PCCA Journal|3 rd Quarter 2011 14

As trends and legislation change, employers can reference rules and regu-lations on a state-by-state basis to deter-mine candidate employment eligibility based on credit report results. However, before an employer can take adverse ac-tion based on any information in a con-sumer report, including credit checks, he or she is required by the FCRA to issue the employee or candidate a pre-adverse action disclosure, followed by an adverse action disclosure.

In the pre-adverse action disclosure, an employer must also present a copy of the consumer report (credit check included if applicable) performed as well as directions on how the candidate or employee can challenge errors on the report if such mistakes exist.

“If my employer asked permission to run a credit check, I would obviously provide it,” Thomas said. “But I would warn them about my age and lack of credit and pray it doesn’t affect my job.” “Checking employee credit is a complicated issue no matter what the outcome; that’s why we make it a point to be available to help educate employ-ers on this matter,” Phillips said. “When you have an expert helping you navigate a sensitive issue like this, you’ll always be a step ahead of whatever the outcome may be.”

The Applicant’s Rights

When a credit check is the reason for denying employment, the employer must provide the individual with an

adverse action notice including the name, address and phone number of the credit reporting agency used, notice of the right to request and obtain another free copy of the credit report within 30 days, notice of the right to dispute the accuracy of the report with the credit reporting agency, and a notice that the credit reporting agency did not make the decision to take adverse action against the individual and is unable to provide the speciﬁc reason why the action was taken.

For more information, click to www. globalhrresearch.com or visit the U.S. Department of Labor at dol.gov.

Human Resources

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