/ Compliance & Adverse Action
The adverse action process
If information in a report might lead you to decline a candidate or tenant, the FCRA requires a specific two-step notice process. Skipping it is one of the most common — and most sued-over — screening mistakes.
The required steps
- 1. Pre-adverse action notice
- Send the candidate a copy of the report and the CFPB's Summary of Rights before you finalize the decision
- 2. Wait a reasonable period
- Typically at least 5 business days, so the candidate can review and dispute
- 3. Final adverse action notice
- If you proceed, send the final notice with the required disclosures
How Ethur streamlines it
- Start the pre-adverse flow directly from the report
- Notices are generated and sent for you, with delivery tracked
- The waiting period is built in — you can't accidentally skip ahead