A pre-adverse action notice gives the candidate a copy of the report and the FCRA rights summary before you decide. Send it, wait a reasonable period, then send the final adverse action notice only if the decision stands.
Pre-adverse action notice template
Replace the bracketed fields.
[Date]
Dear [Candidate name],
With your written authorization, we obtained a consumer report from
[Consumer reporting agency name, address, phone].
Based in whole or in part on information in that report, we are considering
withdrawing our conditional offer for the [job title] position. We have not
made a final decision.
Enclosed are:
1. A copy of the consumer report.
2. "A Summary of Your Rights Under the Fair Credit Reporting Act."
If you believe any information in the report is inaccurate or incomplete, or
you would like us to consider additional information, please contact
[Name, email, phone] by [date, at least five business days from today].
You also have the right to dispute the report directly with
[Consumer reporting agency].
Sincerely,
[Name, Title, Company]
What federal law requires
Before adverse action based in whole or in part on a consumer report, you must give the candidate a copy of the report and a written description of their rights (15 U.S.C. 1681b(b)(3)(A)). The prescribed description is the CFPB form "A Summary of Your Rights Under the Fair Credit Reporting Act."
The FTC gives the purpose: the person has an opportunity to review the report and explain any negative information. You also need a standalone written disclosure and written authorization before ordering the report (15 U.S.C. 1681b(b)(2)(A)).
How long to wait
The statute sets no waiting period. The FTC's 2011 staff report says some reasonable period must elapse.
Five business days comes from an FTC staff letter. In the 1997 Weisberg letter, the staff said the five-day period appeared reasonable, while noting that facts may require a different time.
Courts have not agreed. The Florida Bar Journal notes one court held eight business days reasonable.
Pre-adverse versus adverse action notice
| Pre-adverse | Adverse | |
|---|---|---|
| Timing | Before the decision | After the decision |
| Includes | Report, FCRA rights summary | Notice, CRA contact details |
| Statement | Decision not yet made | CRA did not decide and cannot explain why |
The final notice comes from 15 U.S.C. 1681m(a).
California and NYC add-ons
California employers with five or more employees must make an individualized assessment covering the offense's nature and gravity, time passed, and the job. The written preliminary decision must name the disqualifying conviction, include the report, and explain the right to respond. The applicant gets at least five business days, plus five more if they dispute accuracy in writing. The final notice states the denial and any reconsideration procedure (Cal. Gov. Code 12952).
New York City allows criminal checks only after a conditional offer, requires an Article 23-A analysis, and requires a Fair Chance Notice with at least five business days to respond.
Using AI evaluations alongside background checks
The FCRA steps apply when a report drives the decision. Keep the report separate from the skills decision. Tools such as AI Candidate Evaluation score every candidate on the same criteria before the check begins. Once the notice goes out and the offer is withdrawn, offer rescinded after a background check covers what the candidate faces next.
State and city rules vary, and this is not legal advice.