Handling Adverse Info
September 5, 2026
A record on a background check is not a decision. That distinction — adverse information versus adverse action — is where most nonprofits get into trouble, because the moment you turn someone away based on what a report says, a legally required sequence starts.
What's covered: · Adverse information vs adverse action: one is data, the other is your decision · The required sequence — pre-adverse notice with a copy of the report and the CFPB "Summary of Your Rights," a genuine window to dispute, then a final notice · Why the waiting period exists, and what applicants actually use it for · Reading results properly: criminal records, registry matches, and identity confirmation · Judging relevance to the specific role rather than reacting to the word "record" · What to do when an applicant says the record isn't theirs
The uncomfortable truth in the data: most people who have a record have one that has nothing to do with the role they applied for. A blanket "any record disqualifies" policy is both bad practice and the version most likely to be challenged. Decide in advance which offences are disqualifying for which roles, so nobody has to invent that standard under pressure with a real person waiting.
This is educational, not legal advice — your counsel should review your policy.
Read and act on results:
Staying FCRA compliant:
Your rights as an applicant:
