Adverse Action Process Overview

Bchex, a BIB Company, offers an automated Adverse Action process.  In this process, FCRA letters of Adverse-Action, Summary of Rights and a Consumer Report are automatically sent to applicant when required.  This process must be followed if an applicant is denied a position based on information contained in their consumer report (Background check).

If you take adverse action based on information in a consumer report, you must notify the applicant. Your notice may be oral, written or electronic and it must contain certain information: FCRA § 615(a)

• The name, address and phone number of the CRA (Consumer Reporting Agency) (including a toll-free number for nationwide CRAs) that supplied the report.
• A statement that the CRA didn’t make the adverse decision and can’t explain why the decision was made.
• Notice of the consumer's right to a free copy of their report from the CRA if they ask for it within 60 days. FCRA § 612
• Notice of the consumer's right to dispute the accuracy or completeness of any information provided by the CRA. FCRA § 611
• The consumer’s credit score, if a score was used.  

If your company utilizes Bchex Adverse Action process, you need only mark the order as "Does Not Meet Guidelines," and Bchex will take care of the rest!  Here is what you can expect to see throughout the process, once an applicant has been marked as not meeting guidelines:

	The FCRA1 status means the first letter has been generated and will be mailed out that day.
	The FCRA2 status means that 10 days has passed since letter one was sent, and the second letter has been generated and will be mailed out that day.
	The FCRA3 status means 3 days have passed since the second letter was sent, and the process is now complete.

To get an idea of what is sent to the applicant, you can view Sample Letters of Adverse Action in Aegis, under Resources > Documents and Forms.  

If you are interested in utilizing this service, please contact us at clientservices@bib.com to learn more! 

You can view more information on the Adverse Action requirements at the Federal Trade Commission website:  Using Consumer Reports for Credit Decisions: What to Know About Adverse Action and Risk-Based Pricing Notices