A background check error can cost you a job, a promotion, or a place to live — and you might not even know the error exists until it’s too late.
If inaccurate information on a background check has caused you harm, you have legal rights. The Fair Credit Reporting Act (FCRA) requires background check companies to follow reasonable procedures to ensure the information they report is as accurate as possible. When they fail — and when employers don’t follow the law before acting on a flawed report — you can take legal action and recover compensation.
At Ware Law Firm, we represent people across Mississippi who have been hurt by background check errors. Whether a wrong criminal record cost you a job or outdated information is following you around, we know how to fix it and hold the responsible parties accountable.
How Background Check Errors Happen
Background checks are compiled by consumer reporting agencies — companies like Equifax, Experian, TransUnion, and dozens of specialty background screening firms. These companies buy your data from credit bureaus, court records, public databases, and other sources, then resell it to employers, landlords, and other parties.
The problem is that this process is riddled with opportunities for mistakes. Common causes of background check errors include:
- Mixed files. Someone with a similar name, date of birth, or Social Security number gets their records merged with yours — and suddenly their criminal history or debts appear on your report.
- Outdated information. Charges that were dismissed, expunged, or resolved years ago still show up because the screening company pulled old records without checking for updates.
- Inaccurate criminal records. Arrests without convictions, misdemeanor charges reported as felonies, or criminal records that belong to someone else entirely.
- Wrong employment or education history. Incorrect dates, titles, or institutions that make it look like you lied on your application.
- Data entry errors. Simple typos — a transposed digit in your Social Security number, a misspelled name — can pull in records that have nothing to do with you.
- Identity theft. If someone has used your personal information to commit fraud or crimes, those records can end up on your background check. If you suspect this, you should also contact an identity theft attorney right away.
What Shows Up on a Background Check
Depending on the type of background check, employers and other parties may see:
- Criminal history — arrests, charges, convictions, sex offender registry status
- Credit history — accounts, balances, payment history, collections, bankruptcies
- Employment history — previous employers, dates, job titles
- Education history — schools attended, degrees earned, dates of attendance
- Residential history — current and past addresses
- Driving records — in certain industries or positions
Any of this information can contain errors. And when it does, the consequences can be immediate — a rescinded job offer, a denied apartment, or a lost promotion — based on information that isn’t even accurate.
Your Rights Under the FCRA When a Background Check Contains Errors
The FCRA doesn’t just cover credit reports. It applies to any “consumer report” used for employment, housing, insurance, or credit decisions — and that includes background checks. Here’s what the law requires:
What Background Check Companies Must Do
- Use reasonable procedures to ensure the maximum possible accuracy of the information they report.
- Investigate disputes when a consumer challenges the accuracy of their report — within 30 days.
- Correct or remove any information they can’t verify.
What Employers Must Do
- Get your written consent before running a background check. The authorization must be in a standalone document — not buried in an employment application.
- Provide a pre-adverse action notice before making any negative decision based on the report. This notice must include a copy of the report and a summary of your FCRA rights — giving you a chance to review the information and dispute any errors before the employer acts.
- Provide a final adverse action notice if they ultimately decide not to hire, promote, or retain you based on the report. This notice must tell you which company provided the background check and inform you of your right to dispute the information.
If an employer skips any of these steps — pulls your report without consent, makes a hiring decision without sending the pre-adverse action notice, or fails to give you a chance to dispute errors — that’s an FCRA violation. And you may have a legal claim.
The Real-World Damage of Background Check Errors
Background check errors don’t just cause inconvenience. They can derail your career and financial stability:
- Lost job offers. An inaccurate criminal record or negative credit information can cause an employer to rescind an offer — even after you’ve already accepted.
- Missed promotions. Current employers who run periodic background checks may pass you over for advancement based on errors in your report.
- Denied housing. Landlords use background checks to screen tenants. Wrong criminal history or eviction records that aren’t yours can keep you from getting an apartment.
- Security clearance problems. If you need a security clearance for your job, background check errors can jeopardize your clearance and your career.
- Emotional and financial stress. Losing a job opportunity because of someone else’s mistake — or fighting to clear your name — takes a serious toll.
How to Dispute a Background Check Error
If you discover an error on your background check, you have the right to dispute it. Here’s how:
- Get a copy of the report. If an employer took adverse action based on a background check, they’re required to give you a copy. If they didn’t, that’s already a potential FCRA violation.
- Identify every error. Go through the report carefully and flag anything that’s inaccurate, outdated, or doesn’t belong to you.
- File a dispute with the background check company. Put it in writing, include supporting documentation, and send it by certified mail. The company has 30 days to investigate and respond.
- Notify the employer. Let them know you’re disputing the information. Under the FCRA’s pre-adverse action requirements, the employer should have given you this opportunity before making a final decision.
- Contact the credit bureaus if needed. If the background check errors stem from inaccurate credit reporting, you should also file disputes with Equifax, Experian, and TransUnion through AnnualCreditReport.com.
If the background check company fails to correct the errors — or if the employer acted on the flawed report without following the FCRA’s required procedures — you may have grounds for a lawsuit.