American Screening, LLC - Handling Adverse Action

Handling Adverse Action

As a client of American Screening, LLC – you may generate free self-service adverse action letters from our website.

Simply log onto your account and select the results page, locate the applicant‘s name. On the right of the name there is a letter icon, click on that and it will take you through the Pre-Adverse and Adverse letter steps.

Both letters can be printed directly from the browser for physical mailing. Once you select self-service request letter “type” and enter the applicant’s physical address, the self-service letter options page will be displayed. This options page allows you to modify the letter text, add space at the top to print on your letterhead, select from 2 attachments including a copy of The applicant’s “Background Report” and the “Summary of Your Rights”, save your changes for future letters & activate a follow up reminder.

Manually Handling Adverse Action

As an employer, you are legally entitled to use consumer reports when you hire new employees and when you evaluate employees for promotion, reassignment or retention. When you use these reports, however, you must comply with the Fair Credit Reporting Act – whether or not the report you ordered contains credit information.

If you decide that, based in whole or in part on the report you receive from us, you cannot hire, promote, reassign or retain the individual, you must go through what is called an Adverse Action procedure. This procedure protects the individual from decisions based on a report that may be inaccurate or incomplete. You do not have to go through this procedure if your employment decision is not based on a consumer report.

An Adverse Action is completed in two steps as follows:

Before you take Adverse Action, you must give the individual a Pre-Adverse Action Notice, a copy of the consumer report we provided to you and a copy of the Federal Trade Commission’s document titled:“A Summary of Your Rights Under the Fair Credit Reporting Act.” The notice should include the following information: name, address and phone number of the agency issuing the report & the statement that the individual must contact the consumer reporting agency directly to dispute the report. If the individual contacts us regarding their report, we will open a formal review and recheck all items the individual is disputing.

If there is a dispute, you are required to hold the position open for the individual for a reasonable amount of time. Most labor attorneys feel one week is sufficient. When we complete our research, which generally takes three to five days, we will issue a final consumer report to both of you and the individual, noting any changes or corrections. If you still cannot hire, promote, reassign or retain the individual, you must give the individual a Final Adverse Action notice provided below.

If there is no dispute simply provide the Final Adverse Action Notice provided below.

Once you have completed both of these steps, you are no longer obligated legally to hold the position open and may fill it with another candidate. You are required to take no further action.

Download Pre-Adverse Action Form

Download Final Adverse Action Form

Download Summary of Applicant's Rights