Adverse Action Notifications on prospective resident applications are required to be provided by the property manager/owner when it intends to decline an applicant, AND when the property manager/owner intends to approve an applicant, with an increased security deposit and/or a guarantor.
One would think it is a much simpler choice when employers review prospective employee applications.
Wouldn’t one?
One would think Adverse Action Notifications on prospective employees are required to be provided by the employer ONLY when the employer intends to decline an applicant. Period. End of Story.
But…..the FCRA states Adverse Action Notifications and the required enclosures must be provided when the end user (Employer or Property Manager/Owner or Creditor) either declines an application….OR….increases the cost of approval of the application.
Well, how does an employer increase the cost of approval, one might ask, wouldn’t one?
If, as the result of the screening of an employment application, an employer, extends an offer of employment at a lower rate of pay or for a position which would be considered beneath the position for which the applicant applied, the employer needs to send the Adverse Action Notifications, explaining the change in the offer of employment.
And, if you like really good stuff, here’s the really good stuff part, POE will send the Adverse Action Notifications on your behalf.
Simply instruct POE to send the Employment Adverse Action Notification – Change In Conditions letter.