Inaccurate-or-Incorrect-Background-Check_-You-May-Qualify-for-a-Lawsuit

Background checks affect nearly every part of daily life. Employers use them when evaluating job candidates. Landlords rely on them before approving a rental application. Some companies even use them before offering volunteer positions or contract roles. Because these reports influence such important decisions, accuracy is essential. Unfortunately, background check errors are more common than many people realize, and when they occur, the consequences can be devastating.

If a private background check company reported incorrect, outdated, or mixed-up information about you within the past two years, and that error affected your job or housing opportunities, you may qualify to join a class action lawsuit under the Fair Credit Reporting Act (FCRA). This type of legal action can help consumers recover compensation and hold companies accountable when inaccurate reports cause financial or emotional harm.

This comprehensive overview explains how background check errors happen, the most common mistakes found in reports, the federal protections available under the FCRA, and what individuals can do if they believe they were harmed by an inaccurate background check.

How Background Check Errors Harm Consumers

A background check can shape someone’s future. When these reports contain false information, the effects can be immediate and long lasting. Many employers reject applicants as soon as a report includes a serious charge, even if that information is incorrect. Landlords may turn down renters based on outdated data. Denials often occur without giving the applicant a meaningful chance to correct the error.

These mistakes can lead to:

  • loss of employment opportunities
  • missed rental housing options
  • financial instability
  • emotional or reputational harm
  • repeated denials from automated systems
  • long periods of uncertainty

The damage caused by an inaccurate report can be just as severe as accurate negative information. This is why federal law requires background check companies to follow strict accuracy and verification standards.

Common Background Check Errors

While every situation is different, certain types of errors occur frequently. These issues can arise from database mix-ups, outdated information, incomplete record removal, or mistakes made during data entry.

Here are some of the most common examples:

1. Incorrect criminal charges

A report may show a more serious charge than the one that actually occurred, such as listing “Guilty of Armed Robbery” when the person was only involved as an “Accessory.”

2. Mislabeled felonies

A misdemeanor may appear as a felony or a dismissed charge may appear active.

3. Sealed or expunged records showing up

Records that should be hidden by court order may still appear if a company uses outdated data sources.

4. Old pending charges incorrectly labeled as active

A case that ended years ago may still show as open or pending.

5. Identity mix-ups

A background report may include records belonging to someone else who has a similar name, date of birth, or address.

6. Duplicate entries

A single charge may appear multiple times in different formats, making the report seem worse than it is.

7. Delayed updates

Court systems may update records, but the private background company may fail to refresh their data.

Any one of these mistakes can cost someone a job or housing opportunity. When multiple errors appear, the impact becomes even more severe.

Why Background Check Inaccuracies Happen

Private background check companies often rely on automated tools that search thousands of online sources, public databases, and outdated repositories. These companies include well-known names such as:

  • Accurate Background
  • Checkr
  • First Advantage
  • HireRight
  • Sterling
  • IntelliCorp

These tools aim to process large volumes of information quickly, but rapid automation means there is little room for human oversight. When systems pull incorrect or incomplete data, that information may end up in a consumer’s report without proper verification.

Errors may occur due to:

  • outdated data pulled from old systems
  • incomplete updates after court actions
  • incorrect identity matches
  • limited quality control procedures
  • reliance on bulk data purchased from outside vendors

Because many employers and landlords rely on automated background screening, even small inaccuracies can cause major harm.

Your Rights Under the Fair Credit Reporting Act (FCRA)

The FCRA is a federal law created to protect consumers from the negative impact of inaccurate background check information. It applies to consumer reporting agencies, employers, landlords, and any company that uses background checks for important decision making.

Under the FCRA, you have several important rights.

1. You must give permission before a background check is conducted

Employers and landlords cannot run a background check without notifying you and receiving your authorization.

2. You have the right to a copy of your background report

If a company takes negative action based on the report, they must give you a copy before finalizing the decision.

3. Background check companies must ensure accuracy

Companies must take reasonable steps to verify that the information they include is correct and up to date.

4. You have the right to dispute inaccurate information

If any details are incorrect, the background check company must investigate and correct the errors.

5. You can seek compensation if your rights were violated

If a company’s negligence or failure to follow the law caused harm, the FCRA allows affected individuals to pursue damages.

When companies fail to follow these rules, consumers may face lost income, housing instability, or long-term damage to their reputation. The FCRA gives individuals the power to challenge inaccuracies and take legal action when necessary.

When Inaccurate Reports Lead to Job or Housing Denials

Many people learn about a background check error only after receiving a rejection. Employers and landlords often send a notice of adverse action when they deny someone based on a background report. In many cases, this notice arrives without enough explanation for the consumer to understand what went wrong.

Common situations include:

  • A job offer was withdrawn after the employer reviewed the report.
  • A landlord denied a rental application based on incorrect criminal information.
  • A volunteer or licensing opportunity was refused because of inaccurate background data.
  • A company used an outdated report that did not reflect recent court decisions.

When this happens, the FCRA requires companies to give consumers enough time to dispute the error before finalizing the decision. Failure to provide this chance may violate federal law.

Inaccurate background checks can cause long-term consequences. Some individuals lose multiple job opportunities before realizing a mistake continues to appear on every report. Others struggle to find housing because a false charge keeps reappearing across different background screening platforms.

Legal action can help:

  • correct inaccurate records
  • recover lost opportunities
  • address financial harm caused by job or housing denials
  • compensate individuals for emotional or reputational harm
  • hold background companies accountable

A class action lawsuit can also encourage companies to improve their systems so the same mistakes do not happen to others in the future.

Do You Qualify for an Inaccurate Background Check Lawsuit?

You may qualify for a lawsuit if, in the last two years:

  • a background check contained incorrect or outdated information
  • a sealed or expunged record appeared in your report
  • the report included charges that do not belong to you
  • you were denied a job or housing because of the inaccurate report
  • the background check company failed to correct the information
  • you did not receive proper notice before or after the background check

Attorneys are currently reviewing cases involving inaccurate background checks and may be able to assist individuals who were harmed by errors.

Steps You Should Take If You Believe Your Report Was Wrong

If you suspect that a background check contained incorrect information, consider the following actions:

1. Request a copy of your background report

This is your right under the FCRA.

2. Identify any inaccuracies

Compare the report with your court records, personal documentation, or past correspondence.

3. File a dispute

Submit a written dispute to the background check company and request a reinvestigation.

4. Keep records

Save emails, letters, rejection notices, or any communication related to the denial.

Consumers harmed by inaccurate reports often benefit from legal consultation to understand their rights and options.

About Ted Law Firm

At Ted Law Firm, supports individuals who have experienced difficulties due to inaccurate background checks or faulty consumer reports.We serve families across Aiken, Anderson, Charleston, Columbia, Greenville, Myrtle Beach, North Augusta and Orangeburg. The firm offers guidance to help people navigate the challenges created by data errors and provides consistent communication to assist individuals in understanding their options during stressful circumstances. The team remains committed to helping community members regain confidence after encountering incorrect information on a background report.Contact us today for a free consultation.

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