Background Check Errors? Get Corrections & Compensation

The FCRA Covers Background Checks, Not Just Credit

Most people associate the FCRA with credit reports, but the statute is broader than that. Under 15 U.S.C. § 1681a(d), any report used for employment purposes qualifies as a "consumer report" — and the company that prepares it is a consumer reporting agency subject to federal regulation. That includes Checkr, Sterling, HireRight, Accurate Background, and every other screening firm, regardless of size.

The core obligation: every CRA must follow "reasonable procedures to assure maximum possible accuracy" (15 U.S.C. § 1681e(b)). When a screening firm runs a name-match algorithm against county court databases and doesn't verify the results, it has failed that standard.

The Pre-Adverse Action Notice — The Most Violated FCRA Right

Before an employer can reject you based on a background check, federal law requires a two-step process. First, the employer must send you a "pre-adverse action notice" that includes a copy of the report and a summary of your rights under the FCRA (15 U.S.C. § 1681b(b)(3)(A)). Then the employer must wait a reasonable period — typically five business days — before making a final decision. Skipping this step is itself a separate FCRA violation, and it happens constantly.

The 30-Day Dispute Window

Once you dispute an error, the CRA has 30 days to investigate and respond (15 U.S.C. § 1681i(a)(1)(A)). During that window, the CRA must contact the original data source, review the evidence you provide, and either correct the error or explain why it stands. If the CRA fails to conduct a reasonable reinvestigation — or simply rubber-stamps the original data — that failure is an independent violation.

Mixed File — Someone Else's Record

Mixed-file errors are the most damaging type of background check mistake. They happen when the screening company matches records by name and partial identifiers — date of birth, partial SSN, or prior address — and attributes another person's criminal history to your file. If your name is common (think Michael Johnson or Maria Garcia), the risk multiplies. The FCRA requires CRAs to use matching criteria strict enough to prevent these errors. When they don't, and you lose a job, that's a viable federal claim.

Expunged or Sealed Records Still Showing

A court order to expunge or seal a record means it should no longer exist for background check purposes. Yet screening companies routinely pull data from third-party databases that haven't been updated. If a background check reports an expunged arrest or sealed conviction, the CRA has failed to maintain accurate records — a clear FCRA violation.

Outdated Arrests and Wrong Dispositions

The FCRA prohibits reporting non-conviction arrest records older than seven years (15 U.S.C. § 1681c(a)(2)). Beyond that federal floor, many states impose even shorter windows or ban arrest-only reporting entirely. Wrong dispositions — listing a dismissed charge as "guilty" or a completed diversion program as "pending" — are equally actionable. These errors persist because CRAs scrape court records without following up on case outcomes.

Ban-the-Box and State Protections

Over 35 states and 150 cities have enacted fair-chance hiring laws that restrict when an employer can ask about criminal history. If your employer ran a background check before a conditional offer — or failed to conduct an individualized assessment — you may have additional claims under state consumer protection laws. In cases involving criminal identity theft, where another person used your identity during an arrest, the reporting errors can compound rapidly.

FCRA claims carry a statute of limitations of two years from the date you discover the violation — or five years from the date the violation occurred, whichever comes first (15 U.S.C. § 1681p). That may sound generous compared to other consumer statutes, but the clock starts ticking the moment you learn about the error — which is usually the day you lose the job.

In employment background check cases, actual damages can be substantial. A single rescinded offer can mean months of lost income, mortgage payments missed, and career progression derailed. When the same error appears on reports for multiple employers — as it often does with medical debt errors and criminal record mismatches — the cumulative financial harm grows quickly.

The CRA's "Investigation" Is an Algorithm

When you file a dispute, the CRA doesn't assign a person to your case. It runs your dispute through an automated system that contacts the original data source — often the same county court database that produced the error. If the source confirms the original data, the CRA marks the dispute as "verified" and moves on. An attorney forces a different outcome by filing suit and triggering real accountability.

Your Employer Has Already Moved On

By the time you learn about the error, the hiring manager has filled the position with someone else. A corrected report doesn't undo the lost opportunity. Litigation is the only mechanism that compensates you for the wages and benefits you would have earned.

We Handle Both FCRA and State Claims

Federal claims cover the CRA's conduct, but many states impose separate obligations on employers — including individualized assessments, waiting periods, and ban-the-box compliance. We evaluate every case for overlapping federal and state background check laws to maximize your total recovery.

Contingency Means Zero Risk

Under the FCRA's fee-shifting provision, the defendant pays our fees when we prevail. You pay nothing upfront, nothing during the case, and nothing at the end unless we win. That structure exists specifically so that individuals can afford to challenge corporations.

This page constitutes attorney advertising. The information provided is for general informational purposes and does not constitute legal advice. Every situation is unique — contact Hyslip Legal for a free consultation to discuss your specific circumstances. Submitting a contact form does not create an attorney-client relationship. Information submitted is not confidential until an engagement agreement is signed.