FCRA adverse action notice template (pre-adverse and final)
US federal rules as of 30 Oct 2026. Not legal advice; state and city rules may add requirements.
If you may decline a candidate or employee because of a background check report, the FCRA requires two steps. First a pre-adverse action notice with a copy of the report and the CFPB Summary of Your Rights, then, after a waiting period, a final adverse action notice with specific disclosures. Below is an FCRA adverse action notice template for each step, ready to copy.
At a glance
| Step | When | Must include |
|---|---|---|
| 1. Pre-adverse action | Before you make the final decision | Copy of the report; Summary of Your Rights Under the FCRA |
| Waiting period | A reasonable time; many employers use 5 business days (the statute, 15 U.S.C. 1681b(b)(3), sets no number; five days is common practice) | Let the person dispute or explain |
| 2. Final adverse action | After the wait, if you still decline | Report provider's name, address and phone; statement the provider did not decide; right to dispute and to a free copy within 60 days |
Template A: pre-adverse action notice
[Company legal name] [Date]
[Candidate full name] [Address or email]
Re: Your application / employment for [Job title]
Dear [First name],
We are considering a decision about your [application / employment] that may be based in whole or in part on information in a consumer report we obtained from:
[Screening company name] [Address] [Toll-free phone] [Website]
A copy of the report and A Summary of Your Rights Under the Fair Credit Reporting Act are enclosed. [Screening company] did not make this decision and cannot explain why it may be made.
The specific items we are concerned about are: [list each item, e.g. "a [offence] record dated [year]"]. We will consider [the nature of the offence, the time since it happened, and the duties of the job: describe].
If any information is wrong or incomplete, or you want us to consider more context, please contact [name, email, phone] by [date: at least 5 business days from sending]. You may also dispute the report directly with [Screening company]. We will not make a final decision before that date.
Sincerely, [Name, title]
Enclosures: consumer report; Summary of Your Rights Under the FCRA (CFPB) ---
Template B: final adverse action notice
[Company legal name] [Date]
Dear [First name],
After reviewing the information you gave us and the consumer report obtained from [Screening company], we have decided [not to hire you for / to end your employment in] the position of [Job title].
This decision was based in whole or in part on information in a consumer report from:
[Screening company name, address, toll-free phone]
[Screening company] did not make this decision and cannot explain why it was made.
You have the right to obtain a free copy of your report from [Screening company] if you ask within 60 days of receiving this notice, and the right to dispute with [Screening company] the accuracy or completeness of any information in the report.
[Add any state or city notice required where the person lives or works]
Sincerely, [Name, title] ---
How to use it
- Do an individualised review first (what, when, how related to the job; see EEOC guidance).
- Send Template A with the report copy and the CFPB Summary of Rights. Keep proof of sending and date.
- Wait. Read any reply. If the report is wrong, fix the facts and reconsider.
- If you still decline, send Template B on the day of the decision.
- File everything. If you reverse, tell the candidate.
Customization notes
- Some states and cities add notices, timing or a written assessment (for example California and New York City fair-chance processes). California (Gov. Code 12952) and New York City each give at least five business days to respond; see the conditional offer letter guide for the citations. Add what applies where the person lives or works.
- If the report came from an investigative consumer report or a state-specific report, extra notices may apply.
- Use the screening company's own notice wording where it supplies one; check it against the statute.
- Keep the notice factual. Do not add reasons not in the report.
FAQ
How long must I wait between the two notices? The FCRA does not set a number. Five business days is common; some states and cities set their own period. Check yours.
Do I need pre-adverse notice for a current employee? Yes, the same employment-purposes rules apply to promotion, retention and reassignment decisions.
What if the candidate does not reply? Document that you gave the full period, then proceed with the final notice if you still decline.
Can I just say "we went with another candidate"? Not if the report was a factor. Follow both steps.
In LiveRec, see Read results, timing and adverse action. LiveRec sends both the pre-adverse and final adverse notices through the screening provider.
Sources
- 15 U.S.C. 1681b(b)(3): https://www.law.cornell.edu/uscode/text/15/1681b
- 15 U.S.C. 1681m: https://www.law.cornell.edu/uscode/text/15/1681m
- CFPB Summary of Rights: https://www.consumerfinance.gov/ (search "A Summary of Your Rights Under the Fair Credit Reporting Act"; accessed 30 Oct 2026)
- FTC: https://www.ftc.gov/business-guidance/resources/using-consumer-reports-what-employers-need-know
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.