Background checks are a standard part of the hiring process for many employers. They help verify a candidate’s history and qualifications. However, these checks can sometimes contain errors that can significantly impact your employment prospects. If you find yourself in such a situation, understanding your rights and knowing how to address these mistakes is crucial. In this blog, we’ll explore the laws governing background checks, the remedies available through an FCRA claim, steps to take if you discover an error, common background check errors, and your options when you find mistakes on your background check.
Background Checks Laws
Background checks are governed by the Fair Credit Reporting Act (FCRA), a federal law that sets the standards for how these checks should be conducted and used. The FCRA ensures the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. Here are some key aspects of the FCRA:
- Consent: Employers must inform you and obtain your written consent before conducting a background check.
- Disclosure: If the information in the background check leads to a negative employment decision, the employer must provide you with a copy of the report and a summary of your rights under the FCRA.
- Dispute Process: You have the right to dispute inaccurate or incomplete information in your background check report. The reporting agency must investigate and correct any errors typically within 30 days.
- Employer Obligations: Employers must follow strict procedures before taking adverse actions based on background check information. This includes providing pre-adverse action notice, a copy of the report, and a reasonable time to respond.
Understanding these laws can help you navigate the process if you encounter an error in your background check.
What Remedies are Available Through an FCRA Claim?
When facing issues with your background check due to errors, the Fair Credit Reporting Act (FCRA) provides several remedies to protect your rights and offer potential compensation. Here, we delve into these remedies to give you a comprehensive understanding of your options:
1. Actual Damages
Definition: Actual damages refer to the tangible, real-world losses you incur due to the background check error. This can include a variety of financial and non-financial impacts.
Examples:
- Lost Wages: If a job offer is rescinded or you lose your current job because of an error, you can claim the wages you would have earned.
- Emotional Distress: Being denied employment due to false information can be highly stressful and traumatic. Courts recognize this and may award damages for the emotional impact.
- Out-of-Pocket Expenses: Any costs directly related to rectifying the error, such as travel expenses for meetings or legal fees, can be claimed.
How to Claim: To recover actual damages, you need to provide evidence of the financial and emotional impacts. This can include pay stubs, medical records, and any other documentation that supports your claims.
2. Statutory Damages
Definition: Statutory damages are a fixed amount of compensation set by law that you can claim without needing to prove the actual harm. This applies when the reporting agency’s violation is willful.
Amount: The FCRA allows for statutory damages ranging from $100 to $1,000 per violation.
Purpose: These damages serve as a deterrent against willful non-compliance by consumer reporting agencies and employers.
How to Claim: To claim statutory damages, you must show that the violation was willful, meaning the reporting agency or employer knew or should have known their actions were wrong but continued anyway.
3. Punitive Damages
Definition: Punitive damages are awarded in addition to actual and statutory damages. They are intended to punish the wrongdoer and deter similar conduct in the future.
Criteria: These damages are only awarded in cases of willful misconduct, where there is clear evidence that the reporting agency or employer intentionally disregarded the FCRA requirements.
Examples: If a consumer reporting agency repeatedly fails to correct known errors in multiple reports, a court may impose punitive damages to penalize this behavior.
How to Claim: Proving willful misconduct requires substantial evidence. Documentation, witness statements, and patterns of non-compliance can support your claim.
4. Attorney’s Fees and Costs
Definition: The FCRA allows successful plaintiffs to recover attorney’s fees and legal costs, making it more accessible for individuals to pursue their claims without worrying about the financial burden.
Purpose: This provision ensures that individuals can seek legal redress without being deterred by the cost of hiring an attorney.
How to Claim: If you win your case, your attorney can petition the court to include their fees and costs in the award. This makes it feasible to hire legal representation even if you cannot afford it upfront as they would likely take your case on contingency.
5. Injunctive Relief
Definition: Injunctive relief is a court order requiring the reporting agency or employer to take specific actions, such as correcting the error in your background check or changing their procedures to prevent future violations.
Examples: A court may order a consumer reporting agency to update their records, implement better accuracy checks, or stop using certain unreliable data sources.
Purpose: This remedy aims to prevent ongoing or future harm and ensure compliance with the FCRA.
How to Claim: To obtain injunctive relief, you need to demonstrate the necessity of the court’s intervention to prevent further violations or harm.
Steps to Pursue an FCRA Claim
If you believe your rights under the FCRA have been violated, here’s how to pursue a claim:
- Consult an Attorney: An experienced FCRA attorney can assess your case, help gather evidence, and navigate the legal process.
- Document Everything: Keep detailed records of all correspondence, reports, and any financial or emotional impacts related to the background check error.
- File a Complaint: Your attorney can help you file a complaint in federal or state court, outlining the violations and the remedies you seek.
- Litigation or Settlement: Many cases settle out of court, but if necessary, be prepared for litigation. Your attorney will represent your interests and work towards achieving the best possible outcome.
Understanding these remedies and the steps to pursue an FCRA claim can empower you to take action if you encounter errors in your background check. With the right legal support, you can seek justice and ensure that your rights are protected.
What Should I Do if I Have a Background Check Error?
Discovering an error in your background check can be alarming, but taking prompt action can mitigate the impact. Here are the steps you should take:
- Obtain a Copy of the Report: Request a copy of the background check report from the employer or the reporting agency.
- Identify the Error: Carefully review the report to identify any inaccuracies or incomplete information.
- Gather Evidence: Collect any documentation or evidence that supports your claim that the information is incorrect.
- File a Dispute: Submit a dispute with the consumer reporting agency that provided the report. Include a clear explanation of the error and any supporting evidence.
- Follow Up: The agency has 30 days to investigate and correct the error. Follow up to ensure the correction is made.
- Notify the Employer: Inform your potential or current employer about the dispute and the expected correction.
If the error is not corrected or if you suffer adverse employment consequences, consider seeking legal assistance to explore further remedies.
The Most Common Background Check Errors
Background checks can contain a variety of errors. Some of the most common include:
- Inaccurate Criminal Records: This can include incorrect records, outdated information, or records that belong to someone else with a similar name.
- Mistaken Identity: Sometimes, information from another person with a similar name or other identifying information can be mistakenly included in your report.
- Outdated Information: Background checks might include outdated information, such as old criminal charges or dismissed cases.
- Incorrect Employment History: Errors in your employment history, such as wrong job titles, dates of employment, or employers.
- Inaccurate Credit Information: Mistakes in your credit history that can affect your employment prospects, especially for jobs in finance or those requiring security clearance.
Understanding these common errors can help you better review your background check and identify potential issues.
What Are Your Options When You Have Mistakes on Your Background Check?
When you discover mistakes on your background check, you have several options to address them:
- Dispute the Error: The first step is to dispute the error with the consumer reporting agency. Provide a clear explanation and supporting evidence.
- Consult an Attorney: If the error is not resolved or has led to significant consequences, consult with an attorney who specializes in background check laws and FCRA claims.
- Seek Damages: If you have suffered financial or emotional harm due to the error, you may be entitled to compensation. An attorney can help you file a claim and seek damages.
- Class Action Lawsuits: In some cases, background check errors affect many individuals. You might be able to join a class action lawsuit, which can provide a collective remedy.
- Employer Negotiation: If the error has impacted your employment, negotiate with your employer. Provide evidence of the correction and ask for reconsideration.
Taking these steps can help you address errors and mitigate their impact on your career.
Errors in background checks can have significant implications, but knowing your rights and the steps to take can help you navigate the process. The Fair Credit Reporting Act provides robust protections and remedies for individuals facing these issues. Whether it’s disputing an error, seeking legal advice, or pursuing damages, taking prompt and informed action is crucial. If you find yourself facing a misleading background check, don’t hesitate to reach out to a specialized lawyer to ensure your rights are protected and to explore all available remedies.
Conclusion: Sanders Law Group Can Help
Navigating the complexities of background check errors can be daunting, but you don’t have to face this challenge alone. At Sanders Law Group, our experienced attorneys are dedicated to fighting for your rights and ensuring that your background check report is accurate and error-free. With over $13 million in settlements recovered, our track record speaks for itself.
At Sanders Law Group, we understand the significant impact that background check errors can have on your career and personal life. That’s why we offer our services at no cost to you. Our Google 5-star rated and BBB A+ rated lawyers can fix background reports and seek compensation for damages caused by these errors. If your employment or other opportunities have been adversely affected due to inaccuracies in your background check, we will work tirelessly to correct these mistakes and recover the damages you deserve.
We believe in transparency and client satisfaction, which is why we provide a free instant case review. Let us take the burden off your shoulders and ensure that your background check reflects your true history. If you’ve been denied a job or housing due to an inaccurate background check, contact Sanders Law Group today to get started on getting you compensation for inaccurate background checks and reclaim your future.
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Don’t let background check errors stand in the way of your success. Trust Sanders Law Group to provide the knowledge and dedication needed to clean up your background check report and protect your rights. With our experienced team by your side, you can confidently move forward, knowing that your background is accurately represented and your future is secure.
