Background Check Errors (FCRA)
If an employer denied you a job (or rescinded an offer) because a background check report was wrong—like someone else’s criminal history, an expunged/dismissed case, or a mixed identity—the Fair Credit Reporting Act (FCRA) may require the screening company to correct it and may require the employer to follow specific notice steps. When the required “adverse action” process is skipped or the report can’t be verified, you may have legal options to fix the record and pursue compensation.
What happened
Employment background checks are often prepared by third party “consumer reporting agencies” (screening companies). Problems usually show up when records are matched incorrectly or not updated.
Common background check errors we see include:
- Wrong criminal history(someone else’s charges/convictions on your report)
- Mixed identity / mixed file(your report merges with a person who has a similar name, DOB, or other identifier)
- Dismissed or expunged cases shown as convictions
- Outdated case status(case was dropped, reduced, or resolved—but the report still shows the earlier charge)
- Wrong jurisdiction(a record from a different county/state attached to you)
- Duplicate records(one incident reported multiple times)
- Incorrect personal information(wrong DOB, address, SSN fragment) that causes bad matching
- Adverse action problems(you were denied without getting the required notices and time to respond)
If a report was used to deny you employment—or to impose worse terms (lower pay, different role, delayed start, required “review,” etc.)—you deserve to know exactly what was reported and who reported it.
Why it’s illegal
Many employment background checks are “consumer reports” under the FCRA when they’re created by a third party screening company. In those situations, federal law generally requires:
1) Accuracy + reasonable procedures (screening companies)
Screening companies must use reasonable procedures designed to assure maximum possible accuracy. When they attach the wrong record to you—or fail to update a case outcome—that can violate the FCRA.
2) A real dispute process (screening companies)
If you dispute an item as inaccurate or incomplete, the screening company must conduct a reinvestigation and correct or delete information that can’t be verified.
3) Proper “adverse action” steps (employers)
When an employer plans to take adverse action based in whole or in part on a consumer report, the FCRA generally requires a two step notice process so you can review the report and dispute errors before the decision becomes final:
- Pre adverse action notice(with a copy of the report + a summary of rights), then
- Final adverse action noticeafter the decision, with key information about the report provider and your rights.
When employers skip these steps—or when screening companies “verify” wrong data—people can lose jobs, income, and opportunities for reasons that aren’t even true.
What to do next
01
Get the report that was used
Ask for the exact background check report the employer relied on and the name of the screening company.
02
Confirm whether you received adverse action notices
Save any emails/letters/portal screenshots showing:
- “pre adverse action,” “adverse action,” “considering adverse action,” or
- “we rescinded your offer based on your background check,” etc.
03
Identify the specific error
Circle or highlight the line(s) that are wrong:
- wrong person, wrong case, wrong disposition, wrong date, duplicate entry, etc.
04
Gather proof fast
Court records and case dispositions matter. If it’s a mixed identity issue, proof of identifiers (DOB, address history, SSN mismatch) is often key.
05
Dispute in writing with the screening company
Keep a clean paper trail:
- copies of what you sent,
- what you attached,
- and proof of delivery.
06
Tell the employer you’re disputing the report (in writing)
Politely request a pause or reconsideration while the screening company investigates.
07
Talk to an FCRA attorney
If you were denied employment because of inaccurate reporting or a broken adverse action process, legal action may be the fastest way to force corrections and stop the same report from costing you the next job.
Documents to gather (quick checklist)
Documents to gather for the fastest review:
- The background check reportused by the employer
- Any pre adverse action / adverse action notices(email, letter, portal screenshots)
- Your job offer letter(or the “rescinded offer” notice)
- The screening company name(and any candidate portal screenshots)
- Court recordsshowing the true outcome (dismissal, nolle prosequi, not guilty, withheld adjudication, expungement/sealing order, etc.)
- Proof of identity (ID) + proof of current address
- Any dispute lettersyou sent and any responses
- A simple timeline(apply → report date → notice date → denial date → dispute date)
- Any financial harm evidence(lost wages, start date delay, travel costs, re application fees)
Tip: Redact full SSNs and full account numbers (keep last 4 if needed) and highlight the incorrect lines on the report.
FAQs
Frequently Asked Questions
What is an “employment consumer report” under the FCRA?
A background check prepared by a third party screening company for employment purposes is often treated as a consumer report under the FCRA. (Some internal-only checks may be different.)
What counts as “adverse action” in hiring?
Adverse action can include denying employment, rescinding an offer, refusing a promotion, or imposing less favorable terms based on a background report.
What is the difference between preadverse action and adverse action?
Pre adverse action is the “heads up” step—intended to give you a chance to review the report and dispute errors before the decision is final. Adverse action is the final notice after the employer makes the decision.
What if the background check shows someone else’s criminal history?
That’s commonly caused by mixed identity or poor matching. You should dispute the report promptly and gather proof (court records and identifier mismatches) to show the record is not yours.
What if the report lists a case as a conviction when it was dismissed or expunged?
Outdated or incorrect case outcomes are a common error. Court dispositions and expungement/sealing orders are often the best proof to submit with a dispute.
Do I have to dispute the report before bringing a claim?
Often, disputing first is important because it creates a clear paper trail and gives the screening company notice and an opportunity to correct the file. (Some cases may still exist even if the dispute process wasn’t followed correctly.)
Who can be responsible—the employer or the screening company?
Depending on what happened, the screening company may be responsible for inaccurate reporting or a broken reinvestigation process, and the employer may be responsible for failing to follow required disclosure/authorization and adverse action steps.
What compensation is available in an FCRA background check case?
Depending on the facts, compensation can include actual damages (lost wages, delayed employment, costs), and in some cases additional damages plus attorneys’ fees and costs.
How long should I keep my documents?
Keep everything—report copies, notices, disputes, proof of delivery, and court records—until the issue is corrected and any claim is resolved.
Free case review—no fee unless we win
If you lost a job opportunity because a background check report was wrong—or because the employer didn’t follow the required adverse action process—contact our office for a confidential case review.