You applied for a job you were qualified for. Or you found an apartment that was a good fit. Then something on a background check came back wrong — and the opportunity disappeared.
Background check errors happen more often than employers and landlords acknowledge, and the consequences for the consumer can be severe. The same federal law that protects your credit report also governs the companies that run background checks — and gives you the right to challenge inaccurate information and seek compensation when it causes harm.
What Background Checks Are Covered?
Employment background checks, tenant screening reports, and insurance background checks are all governed by federal consumer protection law. The companies that compile and sell these reports are required to follow reasonable procedures to ensure accuracy. When they do not, and when the inaccurate report is used against you, you have rights.
Common Background Check Errors
- Dismissed or expunged charges that continue to appear on reports after they should have been removed
- Misclassified offenses — minor infractions reported as felonies, or misdemeanors reported as more serious crimes
- Mixed files, where another person’s criminal or financial history is associated with your name due to similar names or data entry mistakes
- Outdated records that are past the legally permitted reporting period
- Incorrect or fabricated employment history
- Driving record errors used in insurance underwriting that result in higher premiums or denied coverage
Your Right to Know Before an Adverse Action
Before an employer or landlord takes an adverse action against you based on a background check, they are required to give you advance notice. That notice must include a copy of the report and a description of your rights.
If you were denied a job or apartment and no one told you there was a background check problem beforehand, that failure to provide notice may itself be a legal violation.
What You Can Do
Start by requesting a copy of the report — you are entitled to it. Review every entry carefully and identify any information that is incorrect, outdated, or does not belong to you. Submit a written dispute to the background check company identifying the specific errors and providing any documentation you have. Keep copies of everything.
The law allows you to pursue actual damages for lost wages or housing costs, statutory damages, and attorney fees paid by the defendant. You do not need to absorb the consequences of someone else’s error.
