Credit Reports and Employment Background Checks in Vermont
An inaccurate background check can cost you a job offer before you ever get to explain. The FCRA gives Vermont job applicants specific rights when an employer uses a credit or background report to make a hiring decision.
Disclaimer: This page provides general information about the Fair Credit Reporting Act. It is not legal advice, is not tailored to your situation, and does not create an attorney-client relationship. Credit reporting and consumer protection claims are subject to strict deadlines and procedural requirements — waiting, acting on your own, or taking the wrong step can permanently damage or eliminate your legal rights. Before you decide whether or how to act on a credit report dispute, talk to us or another qualified attorney.
The Rules Employers Have to Follow
When a Vermont employer orders a background or credit report as part of hiring, the FCRA requires specific steps: written authorization from the applicant, and — if the employer is considering an adverse decision based on the report — a ‘pre-adverse action’ notice with a copy of the report and a summary of rights before the decision is finalized.
That pre-adverse action step exists so an applicant has a real chance to dispute an error before losing the job, not after. Employers who skip it, or who make a final decision before giving the applicant a reasonable window to respond, may be violating the law even if the underlying report turns out to be accurate.
We also see this come up when a background check surfaces someone else’s criminal record, an outdated conviction that should have aged off, or accounts from a mixed credit file — compounding an already stressful hiring process with information that was never true.
The Two-Notice Requirement
Before taking adverse action, an employer must send a pre-adverse action notice with a copy of the report and your rights, giving you a reasonable opportunity to dispute it. Only after that window passes can the employer send a final adverse action notice. Skipping either step is a common — and often overlooked — violation.
Your Rights as a Job Applicant
- The right to be told in writing that a background or credit report may be used in the hiring decision.
- The right to a copy of the report and a summary of your rights before any adverse decision is finalized.
- The right to dispute inaccurate information before the employer acts on it.
- The right to sue an employer or background check company that skips these steps.
What Compensation May Be Available
- Statutory damages of $100–$1,000 per willful violation.
- Actual damages, including lost wages from a withdrawn job offer.
- Punitive damages in cases of willful noncompliance.
- Attorney’s fees and costs, paid by the violating party.
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