Quick Answer
An incorrect background check can be life-changing - often in the worst way. If a background check is wrong, it can cost you a job, housing, credit, insurance, or a professional opportunity. Under the Fair Credit Reporting Act (FCRA), you are entitled to examine the information in your report and challenge anything you believe is incorrect. The background check company, which is a consumer reporting agency under the law, must investigate a valid dispute (typically within 30 days) and correct or remove information that cannot be verified. If an inaccurate report causes harm and the company fails to meet its legal obligations, you may have the right to seek compensation.
How Background Check Errors Can Affect Your Life
Because decision-makers like employers, landlords, and insurance underwriters use background checks to assess applicants, background check errors can affect important decisions about your work, housing, finances, insurance, and career.
Employment Opportunities
An employer may deny employment, rescind a job offer, or deactivate you from a rideshare or gig work platform, based on erroneous criminal, credit, or employment information contained in a report.
Housing Applications
A landlord may deny an application, require a co-signer, or charge a higher deposit because of a misleading tenant screening report.
Credit and Financial Opportunities
Unreliable records may affect loan approvals, interest rates, insurance decisions, or other financial opportunities.
Professional Licenses
A licensing board may delay or deny an application when a report contains inaccurate criminal or disciplinary records.
Common Types of Background Check Errors
Errors may involve another person’s records, imprecise case information, or outdated data.
Incorrect Criminal Records
A report may show incorrect criminal records including: wrong charges, convictions, or case outcomes. Dismissed charges may also appear as convictions.
Mixed Files and Mistaken Identity
A mixed file combines records belonging to different people. This can happen when names, birth dates, or other identifiers are similar.
Expunged or Sealed Records
A report may include a record that was expunged or sealed. Whether it can be reported depends on the record and relevant laws.
Duplicate Records
The same case may appear more than once. This can make a person’s criminal history seem more serious than it is.
Outdated Information
Reports sometimes contain old information that should no longer be reported. They may also omit a later dismissal or updated case outcome.
Incorrect Personal Information
Errors in names, addresses, Social Security numbers, or birth dates can cause records to be matched to the wrong person.
Why Background Check Errors Happen
Errors may result from incomplete court data, inadequate identity-matching practices, identity theft, or outdated databases. Reporting companies may also fail to verify that a record belongs to the correct person.
Your Rights Under the Fair Credit Reporting Act (FCRA)
The FCRA requires consumer reporting agencies to follow reasonable procedures for maximum accuracy. You may request your report and dispute erroneous or incomplete information.
When an employer uses a report to make an unfavorable decision, it must provide required notices and a copy of the report before taking final adverse action.
What to Do If You Find an Error on Your Background Check
Act quickly to correct the report and preserve evidence of any harm.
Request a Copy of the Report
Ask the reporting company for a copy of the report used in the decision. An adverse action notice should identify the company that prepared it.
Identify Inaccuracies
Review names, addresses, criminal records, employment history, and case outcomes. Mark every item that is inaccurate or does not belong to you.
Submit a Dispute
Dispute each error with the reporting company. Explain what is wrong and provide supporting records. You may also contact the source that supplied the information. Certified mail is recommended to preserve your rights and thoroughly document disputes.
Keep Records of Your Communications
Save reports, notices, letters, emails, and delivery records. Keep notes of calls and any opportunities lost because of the error.
How Long Do Background Check Companies Have to Investigate?
Background check companies (consumer reporting agencies) generally must investigate disputes within 30 days. Some investigations may take up to 45 days. The company must notify you of the results after completing its investigation.
What Happens After You File a Dispute?
After you file a dispute, the reporting company reviews the disputed information and contacts the source when necessary. The company must correct or remove information that is incorrect, incomplete, or unverifiable.
You should receive the investigation results and an updated report if changes were made.
Can You Recover Compensation for a Background Check Error?
Yes, consumers are able to recover compensation for a background check error when it violates the FCRA and causes harm.
Harm may include: missed income, housing expenses, application fees, or emotional distress.
Whether you are eligible for compensation depends on the violation, the company’s conduct, and the evidence of your damages.
Signs a Consumer Reporting Agency May Have Violated the FCRA
Warning signs can include:
- another person’s records appear
- obvious errors are not corrected
- the company fails to investigate
- removed information reappears
- required notices are not provided
- the error causes repeated denials
A flawed report alone does not always prove a violation. The company’s procedures and response to the dispute also matter.
When to Contact a Consumer Protection Attorney
Consider contacting an attorney when a serious error causes a job, housing, or insurance denial or similar harm. Legal help is also available when the background check company ignores a dispute, fails to correct verified errors, or repeatedly reports the same false information.
A background check lawyer can help lessen your burden by
- reviewing your case
- helping with disputes
- identifying critical evidence
- helping sort out your legal options
- filing a lawsuit when necessary
- getting you compensation
Frequently Asked Questions
How do I correct a mistake on my background check?
Request a copy of the report and dispute the error with the reporting company. Include documents that show why the information is wrong. Consider submiting your dispute by certified mail.
Can a background check error cost me a job?
Yes, an employer may reject an applicant, withdraw an offer, or deactivate a current rideshare or gig work employee based on false information.
Can a background check error prevent me from renting an apartment?
Yes. A landlord may deny an application or impose different terms based on an erroneous screening report.
How long does a background check dispute take?
Most disputes must be investigated within 30 days. Some may take up to 45 days.
Can I sue for an inaccurate background report?
Yes, under the FCRA consumers can sue for an inaccurate background report, though whether the circumstances of your specific situation support a lawsuit is something a lawyer decides after considering the relevant facts and laws.