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More About AdverseAction Requirements:Did You Know That The Fair CreditReporting Act (FCRA) Applies To Your Hiring Practices?When required by the FCRA, notificationsto a job applicant must be donein two (2) separate and distinctive communications:In the Fall 2011 publicationof Dealers’ Choice magazine,your legal obligations undervarious Federal Lawswere pointed out in regardto obtaining a potentialcustomer’s credit.Did you know that one of those laws,The Fair Credit Reporting Act(“FCRA”), also has strict legal requirementsfor when you deny a job applicantemployment based in whole or inpart, on information found in third partysources, such as criminal records?The stated purpose of these Federallaws is to give so called consumers (notonly your customers, but also your job applicants)the right to see if the report youreceive from your background check providerhas information that is inaccurate.For example, if a criminal record showsyou information that you use, in wholeor in part, to take Adverse Action (nothire) a job applicant, you are required bythe FCRA to allow the applicant to see itso that they are given an opportunity todispute inaccuracies.The process is tedious and cumbersome,but is simply a part of the cost ofdoing business these days. Below is anexample of how you should be handlingthis FCRA requirement.• First, you must notify the job applicantthat you are taking “pre-adverse” actionand considering not hiring thembased in whole, or in part, on informationfound in public records (typicallycriminal history). You must also providea copy of that report showing theinformation found in public records aswell as a copy of that applicant’s Rightsunder the Fair Credit Reporting Act.The applicant must be given a “reasonabletime period” to contact whoeverprovided you with the information(typically your “background check”provider) and dispute the information.• Second, after a “reasonable time period”(we suggest 5-10 business days)you must provide to the job applicant yetanother notification in writing that youare now taking “adverse” action and nothiring them based in whole, or in part,on information found in public records.Of course, if the applicant is able todisprove or show the public record tobe inaccurate, and if there are no otherfactors or admissions that contributed toyour decision “not to hire” you shouldwithdraw your “adverse” decision not tohire that person. Located in Houston, The Cole Group has been inbusiness since 1973 and provides job applicantscreening for over 800 auto dealerships. If you area Cole Group client, or simply a dealer concernedabout your obligations under the law, please donot hesitate to contact The Cole Group concerningthis issue or any others, www.thecolegroup.comor 1.800.232.560240