Pre-Adverse Action Disclosure – What it Means for Your Employment

Whether you have received or need to send a pre-adverse action notice, knowing what it is and what it means can help immensely when it comes to job seeking or giving someone the bad news. If something negative shows up on your consumer report, employers are required by law to send you a pre-adverse action disclosure and give you ample time to do something about it before they take any further action. By having this information upfront, you can save yourself a lot of trouble down the line, and potentially prevent something from showing up on your state of Florida driver's license check, just to name an example.

What is a Pre-Adverse Action Letter?

When employers make the decision to hire you, they may want to look at your personal consumer report; however, they need to have your permission in order to do so. When they do, they are then allowed to use the information they obtained in the hiring process. If they are considering denying your employment based on something they've found, they will send you a notification. This is what's known as an adverse action letter.

The employer is simply not allowed to do anything against you without giving you the opportunity to deal with the adverse action notification. This includes denying you employment, a raise, or a promotion. Once the letter is sent, an individual assessment has to be made to see if any issues were taken care of to the company's satisfaction.

The pre-adverse action letter will probably look something like a form letter, simply letting you know why you were denied for employment. The notice should also state the consumer reporting company they used. If that part is missing, be sure to get in contact with the potential employer and ask for it. With that information, you can go to the company directly and figure out what's going on. Note: it is a federal crime to order someone else's consumer report without their express, written permission.

What Can I do If I Get A Pre-Adverse Action Letter?

If you should happen to get one of these notifications, the very first thing you should do is contact the company that provided the consumer report. They will be able to show you exactly where all of the red flags are. After that, it simply depends on what they find. If it's some bills that went into collections, they either need to be taken care of or explained. If it's a mistake, that needs to be dealt with, as well. No matter what, if you can prove that you have corrected the issues at hand, the company cannot hold the consumer report against you.

For more information regarding pre-adverse action letters, employment, or consumer reports, be sure to visit The staff there will be able to answer all of your questions and help you through this confusing process.

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