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Quick answer
A pre-adverse action letter is a notice from an employer saying it may not hire you, or may take another negative step, based on your background check. Under the Fair Credit Reporting Act, it must include a copy of the report and a summary of your rights, which gives you a chance to spot and dispute errors before a final decision.
What does a pre-adverse action letter mean?
It means an employer has seen something in your background report that may lead it to withdraw an offer, decide not to hire you, or take another negative action. It isn’t a final decision yet. The letter exists so you can see exactly what the employer saw, and respond if something is wrong.
Pre-adverse action notice
- Sent before a final decision
- Includes a copy of your background report
- Includes a summary of your rights
- Gives you a chance to respond
Adverse action notice
- Sent after the decision is made
- Names the screening company
- Explains your right to a free copy within 60 days
- Explains your right to dispute
Check the report attached to your letter
Read the report carefully and tick anything that’s wrong.
These signs can point to errors in your background report. An advocate can review it with you, free of charge.
Start a free reviewWhat the law says
The Fair Credit Reporting Act (FCRA) sets out what employers must do when they use background reports.
- Permission first
- Before getting a background report, an employer must tell you in writing and get your written permission.
- Before acting
- Before taking adverse action based on the report, the employer must give you a copy of it and “A Summary of Your Rights Under the Fair Credit Reporting Act.”
- Time to respond
- The law doesn’t set an exact waiting period, but the pre-adverse step is meant to give you a reasonable chance to respond.
- After deciding
- If the employer goes ahead, it must send an adverse action notice naming the screening company and explaining your rights.
- Free disputes
- You can dispute errors with the screening company, which generally must investigate within 30 days.
Some states and cities have additional rules about background checks in hiring. This is a general summary of public federal law, not legal advice.
Steps you can take
- Read the report right awayTiming matters, because the employer may make a final decision soon.
- Mark every errorRecords that aren’t yours, wrong outcomes, sealed cases or duplicate entries.
- Contact the employerTell them the report contains errors and that you’re disputing them. Ask whether they can wait for the result.
- Dispute with the screening companyIts name and contact details should be on the report or letter. Include copies of court records or other proof.
- Keep records of everythingCopies of the letter, the report, your dispute and any replies.
Got a pre-adverse action letter? We can go through the report with you.
Common questions about pre-adverse action letters
Does a pre-adverse action letter mean I didn’t get the job?
Not yet. It means the employer may take a negative action based on your report, and it gives you a chance to respond before a final decision.
How long do I have to respond?
Federal law doesn’t set an exact number of days, so it’s best to act quickly and tell the employer if you’re disputing an error.
What’s the difference between pre-adverse and adverse action notices?
The pre-adverse notice comes before the decision and includes your report. The adverse action notice comes after the decision and explains your rights to a free copy and to dispute.
Who do I dispute errors with?
With the background screening company that prepared the report. Its contact details should be on the report or the letter.
Sources
- Federal Trade Commission: Fair Credit Reporting Act
- Federal Trade Commission: Consumer advice
- Consumer Financial Protection Bureau: Submit a complaint
This guide is general information based on public sources. It isn’t legal advice, and Credit Dispute is not a law firm.