: We have an applicant for a Loan Processor position who was extended a conditional offer of employment contingent on a background report. The background report came back with a bankruptcy from four years ago. This individual has great job-related experiences and is an excellent fit for the position, but we decided not to continue with the employment offer based on the bankruptcy. We sent her the pre-adverse action letter, copy of the report and the "rights summary". The letter indicated that we were considering discontinuing the employment opportunity and that she had 5 business days to contact the Consumer Reporting Agency. Within two days, we received a phone call from the applicant stating that she would like an opportunity to explain the bankruptcy. How would you recommend that I proceed at this point?
The FDIC has no restrictions against hiring someone with a previous bankruptcy. We recommend that you give the applicant an opportunity to explain the circumstances. During the discussion, address the nature of the bankruptcy and determine if her previous personal financial issues relates to the position. Once you have discussed the circumstances surrounding the bankruptcy,
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