What is a key requirement when taking adverse action based on a third-party report?

When taking adverse action based on a third-party report, a key requirement is to provide the candidate with a copy of the report. This is an essential part of the Fair Credit Reporting Act (FCRA) compliance process. The FCRA mandates that individuals must be informed if an adverse action is taken against them based on information from a consumer report. This includes providing them with a copy of the report used in making the decision and a summary of their rights under the FCRA.

This requirement ensures transparency and allows the individual to review the content of the report, verify its accuracy, and dispute any incorrect or misleading information. Ensuring that candidates have access to their reports is a fundamental aspect of protecting their rights and fostering fair employment practices. By giving candidates this information, they can understand the basis for the adverse decision and take appropriate action if they believe their rights have been violated.