Key Takeaway
Background check errors are a serious and common problem in the United States. Federal complaint data, enforcement actions, academic research, and litigation statistics continue to identify recurring errors such as someone else’s records in an unrelated report, inaccurate criminal history data, duplicate records, outdated information, and ignored or mishandled dispute investigations. According to Consumer Financial Protection Bureau (CFPB) data, each year millions of consumers file complaints about inaccurate consumer reports, including background check reports. If an inaccurate background check costs you a job, housing, or other opportunity, Consumer Justice Law Firm can help you understand your rights under the Fair Credit Reporting Act (FCRA) and pursue legal remedies when reporting companies fail to follow the law.
What Is a Background Check Error?
A background check error is any information in a background check report that is inaccurate, incomplete, outdated, duplicated, someone else’s, or unreportable. Background check reports are used for employment, housing, insurance, licensing, or other eligibility decisions.
What Causes Background Check Errors?
Common causes include:
- Mixed-file errors
- Name-matching mistakes
- Incomplete court updates
- Duplicate records
- Data-entry errors
- Reporting delays
- Failure to update case dispositions
- Deficient dispute investigations
Who Is Most Likely to Be Affected by Background Check Errors?
- Job applicants
- Gig workers (Uber, Lyft, DoorDash, Instacart)
- Nurses and healthcare workers
- CDL drivers
- Teachers
- Government contractors
- Apartment applicants
- Consumers with common names
- Individuals with expunged or dismissed records
What These Background Check Error Statistics Mean
Although no nationwide background check-sepcific error rate exists, complaint data, enforcement actions, and academic research point to recurring issues involving inaccurate records, incorrect identity matching, and challenges correcting errors after they are reported. These findings suggest that consumers continue to face risks of harm due to consumer reporting errors, including a significant impact from background check errors.
Background Check Errors: By the Numbers
| Stat | What It Means |
|---|---|
| 95% of employers with a U.S. presence use background screening | Most candidates, applicants, and employees will likely encounter a background check at some point in their working lives |
| 5.8 Million CFPB complaints in 2025 involved credit or consumer reporting | Large numbers of people in the U.S. are dealing with the fallout of consumer reporting errors |
| 26,700 tenant screening complaints were analyzed by the CFPB | Renters looking for housing are coming up against tenant screening problems in huge numbers |
| 17,240 tenant complaints involved incorrect information | Most renters faced with tenant screening problems are dealing specifically with errors in their reports |
| 22% of 3.6 million eviction records contained misleading or ambiguous information | Nearly 1/4 of eviction records are potentially creating an unfair and undeserved impression of a renter |
| 120% increase in CFPB complaints involving employment background checks and similar reports | Whether the increase in complaints is due to increased consumer awareness about errors or increased incidents of errors, the problem of employment background check errors isn’t declining |
| 59% of reporting complaints involved inaccurate information | The majority of complaints about consumer reports are specifically about errors in consumer reports |
| 856,600 complaints involved dispute-investigation problems | Nearly 1 million complaints were specifically about how the companies that make consumer reports don’t adequately investigate disputes |
| 37.4% increase in FCRA lawsuits from 2024 to 2025 | Whether the increase in lawsuits is due to increased consumer awareness about their rights or increased incidents of harm due to FCRA violations, litigation is an expanding tool for accountability |
| $326 Million documented FCRA settlements involving employers and screening companies | Large numbers of people who do seek to enforce their rights under the FCRA are successful in recovery money for harm suffered |
Why Background Check Accuracy Matters
Accuracy matters because background check inaccuracies can affect access to employment, housing, insurance, and more. Federal regulators have documented mixed file records, duplicate entries, outdated information, incomplete case outcomes, criminal background check errors, and records that should have been sealed or expunged.
Inaccurate consumer reports can create obstacles to employment and housing, prompting affected individuals to seek legal guidance from an FCRA attorney or background check lawyer.
How Common Are Background Check Errors?
There is no authoritative national error rate covering all background checks. Available studies instead examine specific records, screening companies, disputed reports, or consumer populations. Together, these findings demonstrate that reporting inaccuracies remain a recurring concern.
Percentage of consumers reporting errors
In 2025,**** incorrect information was the most common issue identified in CFPB consumer reporting complaints, accounting for 59% of complaints that were resolved through either an explanation or relief (about 2.8 million complaints).
Dispute investigation problems: Another 18% (approximately 856,600) involved problems with a company’s investigation into an existing reporting issue.
Background screening complaint trends: Complaints involving other personal consumer reports, including employment background checks, increased 120% in 2025 compared with the monthly average of the previous two years.
Common Categories of Errors
Criminal record mismatches, duplicate records, outdated information, incorrect case dispositions, sealed or expunged records, and wrong-person information are repeatedly identified by federal regulators as common types of errors.
Most Common Background Check Errors and Their Consequences
| Error Type | Example | Potential Impact |
|---|---|---|
| Wrong-Person Record | Another person’s criminal history appears on your report | Job denial or housing denial |
| Expunged Record Reported | Sealed or expunged case remains visible | Lost employment opportunities |
| Incorrect Criminal Disposition | Dismissed charge reported as a conviction | Hiring barriers |
| Duplicate Records | Same case reported multiple times | Inflated criminal history |
| Outdated Information | Report does not reflect updated court records | Delayed approvals |
| Incorrect Eviction Information | Eviction record contains errors | Rental denial |
| Mixed File Error | Report combines data from different people | Adverse decisions based on inaccurate information |
| Deficient Dispute Investigation | Error remains after dispute | Ongoing harm and repeated denials |
Frequency of Mixed Files and Identity Confusion
Mixed-file errors can occur when information belonging to one consumer is incorrectly reported as belonging to another.
The CFPB has taken enforcement action over background reports that included criminal records belonging to the wrong consumer and has warned against matching records based only on names.
Employment Background Check Statistics
Employment background screening is nearly universal among medium and large employers. As more employers rely on screening reports during hiring decisions, the accuracy of those reports becomes increasingly important.
95% of Employers Use Background Checks
A 2021 PBSA/HR.com survey found that 95% of organizations with at least one U.S. location conducted employment background screening.
Background Check Errors Can Affect Hiring Decisions
A 2024 Criminology study found that approximately half of participants had at least one dismissed criminal charge incorrectly reported as a conviction on a private-sector background check.
Employers Must Follow Adverse Action Requirements
When an employer uses a consumer report to make an employment decision, the Fair Credit Reporting Act generally requires compliance with pre-adverse action and adverse action procedures.
Tenant Screening Statistics
Rental Applications Rejected Due to Screening Reports
The CFPB reports that consumers have been denied rental housing because screening reports contained information belonging to someone else, outdated records, or inaccurate criminal and eviction information.
Common Tenant Screening Errors
Common problems in tenant screening reports include duplicate eviction records, missing case outcomes, sealed or expunged records, outdated information, and records belonging to another person.
How Tenant Screening Errors Affect Renters
Inaccurate tenant screening reports may result in:
- Rental application denials
- Higher security deposits
- Additional screening requirements
- Cosigner requirements
- Delayed move-in approvals
- Lost housing opportunities
Consumer Complaints About Background Check Companies
CFPB Complaint Data
From 2019–2022, the CFPB analyzed roughly 26,700 tenant-screening complaints, including 17,240 involving incorrect information and 4,956 involving problems with a company’s investigation into an existing issue.
More broadly, the CFPB’s 2025 Consumer Response Annual Report found that 59% (2.8 million) of credit or consumer reporting complaints closed with an explanation or relief involved incorrect information.
FTC and Regulatory Enforcement Trends
In 2026, RentGrow was required to pay $2.25 million to settle FTC allegations involving FCRA violations, including alleged duplicate criminal and eviction records and deficiencies in dispute handling.
In 2023, the FTC and CFPB obtained a $15 million settlement involving TransUnion and its rental-screening subsidiary over alleged inaccuracies in tenant screening reports.
Fair Credit Reporting Act Background Check Lawsuit Statistics
FCRA Litigation Trends
WebRecon recorded 8,369 FCRA lawsuits in 2025, a 37.4% increase over 2024. These figures cover FCRA litigation broadly and should not be presented as background-check lawsuits alone.
Notable Settlements and Verdicts
| Case or Enforcement Action | Amount | Issue | Source | Source Year | Publication Year |
|---|---|---|---|---|---|
| Cornelius v. SambaSafety | $680,000 | Jury award involving Uber deactivation caused by inaccurate employment background check information. | Consumer Justice Law Firm - Case Result | 2026 | 2026 |
| RentGrow | $2.25 million | Tenant screening accuracy and dispute allegations | FTC - Original Enforcement Case | 2026 | 2026 |
| TransUnion Rental Screening | $15 million | Inaccurate and incomplete eviction information | FTC and CFPB - Original Enforcement Announcement | 2023 | 2023 |
| GIS / BGC | $13 million+ in relief and penalties | Employment background screening accuracy and dispute issues | CFPB - Original Enforcement Announcement | 2015 | 2015 |
Frequently Asked Questions About Background Check Errors
How common are background check errors?
There is no official nationwide background check error rate. However, CFPB complaint data, academic studies, and regulatory enforcement actions show that inaccurate information remains a recurring problem in employment and tenant screening reports.
What is the most common background check error?
Common errors include wrong-person records, duplicate criminal records, incorrect case outcomes, outdated information, and the reporting of expunged or sealed records.
Can a background check report another person’s criminal record?
Yes, though it is unlawful under the FCRA. Federal regulators have repeatedly taken action against background screening companies for mixed-file errors and inadequate matching procedures that resulted in another person’s records appearing on a consumer’s report.
Can an employer reject me because of a background check error?
Yes. An employer is generally allowed to make a decision based on the information presented in a background report and available at the time of the decion. Even if you correct background check errors, the specific employer or position you were rejected for may be gone. But employers using consumer reports for employment purposes must follow the Fair Credit Reporting Act’s pre-adverse and adverse action requirements before formally rejecting you.
How many consumers complain about inaccurate reports?
According to CFPB data, approximately 59% of credit and consumer reporting complaints closed with an explanation or relief in 2025 involved incorrect information on a consumer report.
Are tenant screening reports often inaccurate?
Yes, tenant screening complaints frequently involve incorrect criminal records, inaccurate eviction records, outdated information, and reports containing information that belongs to another person. The CFPB analyzed approximately 26,700 tenant-screening complaints from 2019 through 2022.
What should I do if my background check contains incorrect information?
Review the report carefully, gather supporting documentation, dispute the error with the reporting company, and keep records of all communications. If the inaccurate report causes you to lose employment or housing opportunities or if you want help preparing a dispute, speak with an attorney experienced in Fair Credit Reporting Act claims. Learn more about what to do if your background check is wrong.
Can I sue for a background check error?
Yes. While not every background check error will support a lawsuit, in many situations, consumers have legal remedies under the Fair Credit Reporting Act if a background screening company or other consumer reporting agency fails to use reasonable procedures to assure maximum possible accuracy or fails to properly investigate disputes. This ability to sue for errors is true of employment background check errors and tenant screening errors.
Sources for this article
This page draws on federal regulatory reports, academic research, industry surveys, and litigation data. Statistics reflect the populations and time periods studied and should not be generalized beyond their original scope. Consumer complaint figures reflect reported issues, while academic studies and litigation data provide additional findings on reporting errors, legal claims, and case outcomes.