What employment background checking companies don't want you to know | Bill Clanton

What employment background checking companies don’t want you to know

The Impact of Inaccurate Background Checks on Employment Opportunities: Understanding Your Rights

Welcome to Clanton Law Office’s latest insight into consumer protection law, where we specialize in safeguarding your rights under the Fair Credit Reporting Act (FCRA). I’m Bill Clanton, a seasoned attorney with a passion for helping individuals navigate the complexities of credit reporting, debt collection harassment, and other consumer-related challenges. Today, we’re diving into an essential topic that affects millions of job seekers: the critical impact of inaccurate background checks on employment opportunities.

YouTube video

Why Background Checks Matter:

In today’s job market, background checks are a common hurdle for potential employees. But did you know that a background check is essentially a credit report? Yes, under the FCRA, any third-party assessment of your character, reputation, or personal characteristics for employment purposes is considered a credit report. This definition broadens the scope of what you might typically consider a credit check, encompassing more than just your financial history.

The Fair Credit Reporting Act (FCRA) and You:

The FCRA mandates that background check companies adhere to stringent accuracy standards. These firms must have reasonable procedures to ensure the maximum possible accuracy of the reports they produce. Failure to comply can lead to significant consequences, not just for these companies but for the individuals whose opportunities are on the line due to inaccuracies. The matching of names only is not enough. The CFPB issued guidance stating that name only matching is insufficient. False name matching is such a big problem, the CFPB Director issued a statement on it.

Your Rights Under the FCRA:

One of the FCRA’s key provisions is the concept of “adverse action” – a fancy term for a negative employment decision, such as not hiring or promoting someone based on their credit report. Before taking an adverse action, employers must provide you with a copy of the report they used in their decision-making process. This requirement is designed to give you a fair chance to address any inaccuracies that might impact your employment prospects.

Obtaining and Reviewing Your Background Check:

If you’ve faced an adverse employment decision, you have the right to obtain a copy of the background check that influenced that decision. This step is crucial for identifying and correcting any errors. Common mistakes include mismatched identities or outdated information, particularly concerning criminal records. By reviewing your report carefully, you can take steps to rectify these inaccuracies and protect your employment prospects.

Criminal records are often subject to false matching because they are public records and normally do not contain social security numbers. Even if background check companies wanted to do a better check on criminal records, the very nature of them means they can’t.

Taking Action Against Inaccuracies:

Discovering errors on your background check can be unsettling, but it’s not the end of the road. At Clanton Law Office, we’re equipped to guide you through the process of challenging and correcting these inaccuracies. Whether it’s a case of mistaken identity or outdated information, we’re here to help ensure that your background check accurately reflects your history.


Inaccurate background checks can unjustly hinder your job search and career advancement. Understanding your rights under the FCRA is the first step towards ensuring fair treatment. If you’re dealing with inaccuracies in your background check or have concerns about your consumer rights, Clanton Law Office is here to assist.

Need Legal Assistance? Contact Clanton Law Office Today

For personalized advice and legal assistance, contact us us at Clanton Law Office. We’re committed to protecting your consumer rights and ensuring that your background checks don’t stand in the way of your employment opportunities. Contact us today or call (210) 226-0800 for a free consultation.

About The Author

Bill Clanton

Over the years my office has helped thousands of consumers who were cheated, ripped-off, and mistreated by debt collectors, credit reporting agencies, banks, credit unions, and car dealers. If you have a problem with a business being dishonest with you give me a call. I’d love to set them straight.