Understanding FCRA Background Check Regulations and Common Violations
The Fair Credit Reporting Act (FCRA) is a federal law that regulates how consumer reporting agencies (CRAs) collect, use, and share personal information. When employers, landlords, or financial institutions run background checks, they must follow FCRA rules to protect individuals’ rights to privacy and accuracy.
Common Background Check Agencies
The most frequently used background check agencies in the U.S. include:
HireRight
Checkr
First Advantage
Sterling
GoodHire
Accurate Background
These agencies gather information from public records, credit bureaus, and criminal databases to create background reports. While they play a vital role in employment and tenant screening, errors are common — and these mistakes can have serious consequences for consumers.
Common Errors in Background Checks
Some of the most frequent FCRA background check errors include:
Mismatched identities – Reports containing information from someone with a similar name or birthdate.
Outdated or expunged records – Including criminal charges or convictions that have been dismissed or sealed.
Duplicate or mixed files – Combining data from multiple people into a single report.
Incorrect employment or education details – Wrong job titles, dates, or degrees listed.
Inaccurate credit information – Old debts or incorrect payment histories.
These inaccuracies can lead to job denials, rental rejections, or damaged reputations — all in violation of your rights under the FCRA.
How to Dispute Background Check Errors
If you find errors in your background report, follow these steps to start a background check dispute:
Request your background report from the agency that provided it (such as Checkr or HireRight).
Identify the errors — note incorrect dates, charges, or names.
File a written dispute directly with the background check company. Include documentation proving the information is wrong.
Follow up — the CRA must investigate and correct inaccuracies within 30 days.
If the agency fails to fix the issue or continues to report false information, it may be violating the FCRA — and you may have grounds for legal action.
When to Contact an FCRA Lawyer
If your disputes are ignored, or an employer denied you based on incorrect data, consider consulting an FCRA lawyer. These attorneys specialize in holding background check companies accountable for errors and unlawful practices. You may be entitled to compensation for lost job opportunities, emotional distress, and other damages.
Under the FCRA, you have several important rights, including:
The right to be notified if an employer or landlord takes adverse action (like denying a job) based on your background report.
The right to request a copy of your report from the agency.
The right to dispute inaccurate or incomplete information — and have it corrected within a reasonable time frame (usually 30 days).
Background check errors can have lasting impacts on your career and life. Understanding FCRA background check regulations and acting quickly to dispute background report inaccuracies can help protect your rights.
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Have you been a victim of an inaccurate background check or have other questions? Contact us!
