Fight Background Check Errors with the FCRA Law: Dispute, Sue, and Protect Your Rights
What Is an FCRA Background Check?
When you apply for a job, lease an apartment, or even volunteer for certain organizations, there's a good chance a background check will be part of the process. But many people don't realize that these background checks are governed by a federal law called the Fair Credit Reporting Act (FCRA). An FCRA background check is any screening report prepared by a third-party company that is used to make decisions about employment, housing, or other opportunities. These reports are required to be accurate, fair, and handled with your consent.
Employers, landlords, and other decision-makers typically rely on background check agencies such as Checkr, First Advantage, HireRight, Asurint, Accurate, Sterling, and Inflection to gather this information. These companies compile your personal, professional, and legal history into a report that may include:
Criminal records (including dismissed or expunged cases)
Employment verification
Education history
Identity verification (SSN trace)
Address history
Sex offender registry status
Driving records (for driving-related roles)
How Employers Use FCRA Background Checks
In the context of employment, FCRA background checks are used to evaluate your trustworthiness, qualifications, and overall suitability for a position. Employers may look for criminal records, check whether your work history is accurate, or assess if you pose a potential risk in sensitive roles. Some industries, such as healthcare, education, transportation, or finance, rely heavily on these checks due to regulatory or safety requirements.
Before a background check can be conducted, the FCRA requires that:
You receive a clear and conspicuous written disclosure about the check,
You give written consent for the background check to take place.
If an employer decides not to hire you based on the background check, they must first provide a pre-adverse action notice, a copy of the report, and a summary of your rights under the FCRA.
What to Watch Out for When Undergoing a Background Check
Many people assume these reports are always accurate—but that’s not the case. Background check companies can and do make mistakes. In fact, some of the most common background check issues include:
False criminal records due to mistaken identity or mixed files
Outdated information, such as old arrests that should no longer appear
Incorrect employment or education history
Inaccurate SSN traces that link you to someone else’s record
If your background check has wrong information, it could cost you a job, housing, or professional opportunity. That’s why it’s critical to:
Request a copy of the report before decisions are made.
Review it closely for errors or outdated data.
Take action quickly if anything appears incorrect — whether that’s filing a dispute or speaking with a background check lawyer.
The rest of this guide will show you what your rights are under the FCRA, how to dispute a failed background check, and when you may be able to sue a background check company for reporting false or harmful information.
Which FCRA Violations Are Actionable (and Which Are Not)?
Not every FCRA violation automatically gives you the right to sue. While the law includes many technical requirements, only certain violations create what’s called an "actionable claim"—something you can take to court to seek compensation. Others might be important but only support a lawsuit if they result in harm or are tied to more serious violations.
Actionable FCRA Violations (You Can Sue for These)
These are clear violations that often result in direct legal action. You may not need to file a dispute first, and you can seek compensation for actual damages, statutory damages, emotional distress, or even punitive damages in some cases.
Examples:
Inaccurate background check information (§ 1681e(b))
E.g., Your background check includes someone else's criminal record due to a mixed file.
Failure to provide a pre-adverse action notice before denying a job (§ 1681b(b)(3))
E.g., An employer rejects you based on the background check without giving you a chance to see or dispute it.
Reporting outdated or legally non-reportable information (§ 1681c)
E.g., A dismissed charge from 10 years ago is still on your report.
No disclosure or consent for the background check (§ 1681b(b)(2))
E.g., You weren’t told a background check would be run, and you didn’t sign anything.
Conditional or Secondary Violations (Only Actionable with Other Claims or Harm)
Some FCRA sections support a lawsuit only if certain conditions are met—like a failed dispute investigation or a proven pattern of negligence.
Examples:
Failure to investigate a dispute properly (§ 1681i)
You must first file a dispute; if they ignore or mishandle it, then you may sue.
Furnisher (employer, landlord, etc.) fails to correct data (§ 1681s-2(b))
Only applies if the error was reported to the background check company and they notified the furnisher.
Non-Actionable Technical Violations
These might be wrong or unfair, but you can’t sue for them on their own, only regulators like the FTC or CFPB can take enforcement action.
Examples:
Failure to keep written internal compliance policies
Slight delay in providing a disclosure when no harm occurred
Incorrect formatting of documents without any real impact
Have You Been a Victim of an Inaccurate Background Check?
What Makes a Strong FCRA Case?
If you're wondering whether your experience justifies legal action, ask:
Was there a clear factual inaccuracy in the report?
Did the report lead to a job denial, housing loss, or other harm?
Did the background check company or employer violate your notice or consent rights?
Did you dispute the report, and they refused to fix it?
If the answer is yes to one or more of these, you may have an actionable claim. An experienced background check lawyer can help you determine if you can sue the background check company and whether compensation is available.
Who Are the Background Check Companies?
Most background checks are not conducted by your employer directly. Instead, they are outsourced to third-party companies known as consumer reporting agencies (CRAs). These agencies are required by the FCRA to ensure the information they provide is accurate and up to date — but that doesn’t always happen.
Some of the biggest background check companies in the U.S. include:
These companies work with thousands of employers, staffing agencies, and landlords to screen applicants. While they play a central role in hiring and housing decisions, they also cause serious problems when they report false, outdated, or incomplete information.
For example, Checkr is one of the fastest-growing background check providers in the gig economy. But as its automated systems grow, so do the errors. Many people have had to dispute Checkr background check results that incorrectly showed criminal records, outdated information, or cases that didn’t belong to them. In some cases, people have filed a Checkr lawsuit or even chosen to sue Checkr for reporting false records that cost them a job.
If you’re dealing with Checkr background check errors or struggling with inaccurate information from another screening company, you have options. You can file a dispute, request corrections, and in many cases, you may be entitled to compensation under the FCRA.
You don’t have to guess whether your rights were violated. If you're asking yourself things like:
“What if my background check includes false or damaging records?”
...the answers depend on the specifics of your case , but legal help is available, and often free. A background check lawyer can help you evaluate your options, fix your records, and hold the company accountable if your rights were violated.
In the next section, we’ll walk you through how to file a background check dispute step by step, and when it’s better to speak with a lawyer first.
How to File a Background Check Dispute the Right Way
If your background check has false information, the dispute process can protect your rights—but only if it’s done properly. Many people make the mistake of filing a vague or incomplete dispute, or worse, using automated online systems that bury their case in a backlog. Here’s how to get it right.
1. Request a Copy of the Background Report. Before you can dispute anything, you need to know what’s being reported. You have the right to request a free copy of your report if it was used to deny you a job, apartment, or other opportunity.
2. Identify and Document Every Error. Go line-by-line through the report and flag any incorrect, outdated, or unfamiliar information.
Common issues include:
Criminal records that don’t belong to you
Cases that were dismissed, expunged, or sealed
Wrong employment dates or job titles
Incorrect education history or missing credentials
Mistaken identity or SSN mismatches
Take screenshots, gather documents (like court records or pay stubs), and save everything.
3. Draft a Strong, Specific Dispute Letter
A proper dispute should:
Clearly identify the item you’re disputing
State why it’s wrong
Include supporting documentation
Provide your full legal name, address, and the last four digits of your SSN
Mail your dispute to the background check company by certified mail to create a paper trail. Avoid using online dispute portals when possible; they often limit your ability to upload evidence and may trigger automated review systems.
4. Wait for the Investigation (Usually 30 Days). Under the FCRA, the background check company has 30 days to investigate your dispute. They must contact the source of the information (e.g., a court or former employer), review your documentation, and either verify or correct the item.
5. Review the Results and Follow Up. If the disputed item is corrected, request an updated report and ask the company to notify anyone who received the inaccurate report. If the item is not corrected—or if the investigation seems rushed or ignored—you may now have the right to sue for damages.
6. Speak with a Background Check Lawyer if Needed. Sometimes filing a dispute isn’t enough. If you lost a job or housing opportunity due to a background check error, or if your dispute was ignored, speak with an attorney. You may be entitled to compensation, and many FCRA lawyers work on a contingency basis—meaning no upfront fees.
Filing an FCRA Background Check Lawsuit and What Compensation You Can Recover
If a background check company like Checkr, First Advantage, HireRight, Asurint, or any other consumer reporting agency (CRA) fails to follow the law, you have powerful rights under the Fair Credit Reporting Act (FCRA). When these companies report false or outdated information that harms your career, housing, or reputation, you may be entitled to compensation through an FCRA lawsuit.
When You Can Sue Under the FCRA
You can take legal action when a background check company violates your rights or causes harm through negligent or willful reporting errors. Common reasons for filing an FCRA lawsuit include:
Inaccurate or mixed files — when someone else’s criminal record or credit history appears on your report.
Reporting outdated or expunged information that should have been removed.
Failure to follow reasonable procedures to ensure the accuracy of your data.
Not providing a pre-adverse action notice before a job denial or withdrawal of an offer.
Failure to investigate or correct a dispute within the 30-day legal timeframe.
Running a background check without your consent or proper disclosure.
Even if you never filed a dispute, you can sometimes sue immediately—especially when the error is clear, serious, and caused measurable harm such as job loss, housing denial, or emotional distress.
Types of Compensation You May Recover
Under the FCRA, consumers can recover several forms of damages depending on the nature and severity of the violation:
1. Actual Damages
Covers your real financial losses (lost wages, housing deposits, loan denials) and emotional distress (stress, anxiety, embarrassment, or damage to reputation).
2. Statutory Damages
Even if you can’t show a specific dollar loss, you may still recover $100 to $1,000 per violation simply for the company’s failure to comply with the FCRA.
3. Punitive Damages
If the background check company acted willfully or recklessly, courts can award punitive damages to punish the behavior and discourage future misconduct.
4. Attorney’s Fees and Costs
If you win, the company must pay your attorney’s fees and court costs. Most FCRA attorneys work on a contingency basis, meaning you pay nothing upfront—your lawyer only gets paid if you win.
Why Legal Representation Matters
FCRA cases can be complex, and background check companies often rely on automated systems or third-party data sources that make recurring errors. A qualified FCRA lawyer can:
Identify every violation of your rights.
Gather the evidence needed to prove harm.
Handle communication and negotiation with the company.
File a lawsuit if they fail to fix or take responsibility for the error.
Having legal representation ensures that your case is taken seriously and that you recover the full amount you’re entitled to.
Conclusion
Background check companies have a legal duty to report accurate, up-to-date information, and when they fail, you have the right to take action. Whether your report came from Checkr, First Advantage, HireRight, Asurint, or another CRA, the Fair Credit Reporting Act protects you from the lasting damage of false or negligent reporting.
If an incorrect background check costs you a job, housing, or peace of mind, don’t let it slide. Consult with an experienced FCRA attorney who can evaluate your situation, explain your options, and help you pursue compensation for the harm you’ve suffered.
Your background should reflect who you are today, not mistakes made by the system. The law is on your side. Use it to restore your record, protect your rights, and get the justice you deserve.
Let’s Fix Errors on Your Background Check!
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