Remember that an employer, who is requesting your credit report, is obliged to notify you about such an intent; moreover, they are prohibited from proceeding without your explicit written permission for it according to the regulations of The Fair Credit Reporting Act. Some states and cities restrict the information available to the employers, while others even have a complete ban on such credit checks. Since the regulations vary a lot, you can always contact your local state’s labor department and ask about your legal coverage in a particular city.
Should the information in the credit report lead to the negative decision for you in the hiring process, any potential employer is obliged to notify you. It must be done by a ‘pre-adverse action notice’ that also includes a copy of the credit report used and a summary of your rights. After such a notice is sent, an employer must wait three to five business days before completely rejecting your job application. This time should be available for you in order to explain any red flags that intimidated the employer; you also have this time to correct any incorrect information. This is basically a cushion given to a potential employee to fix the report mistakes with the reporting company.
Once the waiting period is finished, your prospective employer must send a post-adverse action notice that includes the name of the credit report agency, employer’s contact information, and an explanatory notice about your right o receive a free copy of the report within the following 60 days.Please vote for the article: Others Cities: « How can you prepare for a credit check? | Does an employer credit check hurt your score? »