How to Dispute a Background Check: A Step-by-Step Guide

A background check can be a critical component of employment, housing, credit applications, and even volunteer positions. While generally accurate, errors can occur, potentially jeopardizing your opportunities. Knowing how to dispute a background check is crucial to protecting your reputation and future prospects. This comprehensive guide provides detailed steps and instructions on how to identify, challenge, and correct inaccuracies in your background report.

Why is Disputing a Background Check Important?

Imagine losing a job opportunity because of an incorrect criminal record listed on your background check, or being denied housing due to a mistaken identity. These are real-world scenarios that highlight the importance of monitoring and, when necessary, disputing the information contained in your background report.

Here’s why disputing inaccuracies is essential:

• Employment: Employers often use background checks to assess a candidate’s suitability for a role. Inaccurate criminal records, discrepancies in employment history, or false educational claims can lead to rejection.
• Housing: Landlords may use background checks to evaluate potential tenants. Negative information, even if inaccurate, can result in a denied application.
• Credit: Some lenders may incorporate background check information into their creditworthiness assessment. Errors can impact your ability to secure loans or favorable interest rates.
• Reputation: Inaccurate information can damage your reputation, even if it doesn’t directly affect your employment or housing prospects.

Understanding the Fair Credit Reporting Act (FCRA)

The Fair Credit Reporting Act (FCRA) is a federal law that protects consumers by regulating the collection, use, and disclosure of consumer information by credit reporting agencies (CRAs), also known as background check companies or consumer reporting agencies. The FCRA grants you several important rights, including:

• The right to access your background report: You have the right to request a copy of your background report from any CRA that maintains information about you.
• The right to dispute inaccurate information: If you find errors in your background report, you have the right to dispute them with the CRA.
• The right to have inaccurate information corrected or deleted: If the CRA verifies that the information is inaccurate, it must correct or delete it from your report.
• The right to a summary of your rights under the FCRA: CRAs are required to provide you with a summary of your rights under the FCRA.
• The right to know who has accessed your report: You have the right to know who has requested a copy of your background report in the past.

Understanding your rights under the FCRA is the first step in effectively disputing a background check. It empowers you to take control of your information and ensure its accuracy.

Step-by-Step Guide to Disputing a Background Check

Here’s a detailed, step-by-step guide to help you navigate the process of disputing a background check:

Step 1: Obtain a Copy of Your Background Report

The first crucial step is to obtain a copy of the background report you wish to dispute. Don’t assume you know what’s on it – even if you’ve seen a similar report before. Each report can vary depending on the CRA used and the information sources they access.

• Identify the CRA: The company that conducted the background check is legally obligated to provide you with their name, address, and contact information. If you received the background check as part of an employment application, the employer is required to provide you with this information if they took adverse action based on the report.
• Requesting your report: Contact the CRA directly and request a copy of your background report. Most CRAs allow you to request your report online, by phone, or by mail.
• Free Annual Report: You are entitled to a free copy of your credit report (which may contain some of the same information as a background check) from each of the three major credit bureaus (Equifax, Experian, and TransUnion) annually. You can obtain these reports at AnnualCreditReport.com. While this isn’t the same as a full background check, it can be a good starting point.
• Review the report carefully: Once you receive your report, review it meticulously. Look for any inaccuracies, errors, or omissions. Pay close attention to the following:
  • Personal Information: Verify your name, address, date of birth, and social security number are accurate. Even minor errors can lead to incorrect information being associated with your report.
  • Criminal Records: Check for any criminal records that are not yours, or that are reported incorrectly (e.g., a misdemeanor reported as a felony, or a dismissed charge reported as a conviction).
  • Employment History: Verify that your employment history is accurate, including dates of employment, job titles, and employers.
  • Education History: Check that your educational credentials are correct, including degrees earned, dates of attendance, and institutions attended.
  • Credit History: While not always included in all background checks, some reports may contain credit information. Review for any inaccuracies.
  • Address History: Verify all past addresses listed are correct.

Step 2: Identify the Inaccurate Information

After receiving and carefully reviewing your background report, the next crucial step is to pinpoint the specific information you believe is inaccurate. Be as detailed and specific as possible.

• Document each inaccuracy: For each error you find, write down the following information:
  • The specific item that is incorrect: Be precise. For example, instead of saying “My employment history is wrong,” say “The report incorrectly lists my employment with Acme Corp ending on January 1, 2022. My actual last day of employment was January 15, 2022.”
  • Why you believe it is incorrect: Explain why you believe the information is wrong. Provide factual evidence whenever possible. For example, “I have pay stubs that show I was employed at Acme Corp until January 15, 2022.”
  • The correct information: Clearly state what the accurate information should be. For example, “The report should state that my employment with Acme Corp ended on January 15, 2022.”
• Gather supporting documentation: Collect any documents that support your claim of inaccuracy. This documentation is critical to strengthening your dispute. Examples include:
  • Government-issued identification: A copy of your driver’s license or passport to verify your name and address.
  • Court documents: If you are disputing a criminal record, provide copies of court documents that demonstrate the record is inaccurate (e.g., dismissal orders, expungement orders).
  • Employment records: Provide pay stubs, W-2 forms, employment contracts, or letters from former employers to verify your employment history.
  • Education records: Provide transcripts, diplomas, or certificates to verify your education history.
  • Letters of explanation: If you have a complex situation, write a clear and concise letter explaining the situation and why the information on the report is inaccurate.
• Highlight the inaccuracies: When you send copies of your documents, highlight the specific information that supports your dispute. This makes it easier for the CRA to review your claim.

Step 3: File a Dispute with the CRA

Once you’ve identified the inaccuracies and gathered your supporting documentation, it’s time to formally file a dispute with the CRA that issued the background report. You must dispute directly with the CRA, not with the company that used the report (e.g., your potential employer). While you might inform the company that used the report that you are disputing it, the legal obligation to investigate lies with the CRA.

• Choose a method for filing your dispute: Most CRAs allow you to file a dispute online, by mail, or sometimes by phone. Filing in writing (either online or by mail) is generally recommended, as it provides a clear record of your dispute and the information you provided.
• Online Dispute:
  • Most CRAs have online dispute portals. Navigate to the CRA’s website and look for a “Dispute” or “File a Claim” link.
  • Follow the online instructions, providing all the required information and uploading your supporting documentation.
  • Keep a record of your online submission, including the date and any confirmation numbers.
• Mail Dispute:
  • Write a formal dispute letter. Your letter should include:
    • Your full name, address, date of birth, and social security number.
    • A clear and concise explanation of each item you are disputing.
    • Why you believe the information is inaccurate.
    • The correct information.
    • A list of the supporting documents you are including.
    • A copy of your background report with the inaccurate information highlighted.
    • Your signature.
  • Include copies of all your supporting documentation. Never send original documents.
  • Send your dispute letter and supporting documentation to the CRA’s address via certified mail with return receipt requested. This provides proof that the CRA received your dispute.
• Phone Dispute:
  • While some CRAs allow disputes by phone, it’s generally not the preferred method. It can be difficult to document the conversation and ensure the CRA has all the necessary information.
  • If you choose to dispute by phone, take detailed notes of the conversation, including the date, time, the name of the representative you spoke with, and a summary of the dispute.
  • Follow up with a written dispute, referencing your phone conversation, to create a written record.
• Example Dispute Letter Template:

  [Your Name]
  [Your Address]
  [Your City, State, Zip Code]
  [Your Phone Number]
  [Your Email Address]

  [Date]

  [CRA Name]
  [CRA Address]
  [CRA City, State, Zip Code]

  Subject: Dispute of Information in Background Report

  To Whom It May Concern:

  I am writing to dispute information contained in my background report, which I received on [Date you received the report]. My identifying information is as follows:

  • Full Name: [Your Full Name]
  • Address: [Your Current Address]
  • Date of Birth: [Your Date of Birth]
  • Social Security Number: [Your Social Security Number]

  I am disputing the following item(s) on my report:

  Item 1: [Clearly describe the first item you are disputing. For example: “The report states that I was convicted of a felony on January 1, 2020.”]

  Reason for Dispute: [Explain why you believe the information is inaccurate. For example: “This is incorrect. The charge was dismissed on December 15, 2019. I have attached a copy of the court order as proof.”]

  Correct Information: [State the correct information. For example: “The report should reflect that the charge was dismissed on December 15, 2019.”]

  Item 2: [Clearly describe the second item you are disputing, if any.]

  Reason for Dispute: [Explain why you believe the information is inaccurate.]

  Correct Information: [State the correct information.]

  [Continue adding items as needed]

  I have enclosed copies of the following documents to support my dispute:

  • [List each document you are including. For example: “Copy of Court Order Dismissing Charge”]

  I request that you investigate these inaccuracies and correct or delete the information from my background report as required by the Fair Credit Reporting Act.

  Thank you for your time and attention to this matter. I look forward to your prompt response.

  Sincerely,
  [Your Signature]
  [Your Typed Name]

Step 4: The CRA’s Investigation

Once the CRA receives your dispute, they are legally obligated to investigate the accuracy of the information you are challenging. The FCRA mandates that CRAs complete their investigation within 30 days, although they can request an additional 15 days if you provide new information during the initial 30-day period.

• The Investigation Process: The CRA will typically contact the source of the information (e.g., the court, the employer, the educational institution) to verify its accuracy. They may also request additional information from you.
• Providing Additional Information: If the CRA requests additional information, respond promptly and thoroughly. This will help them complete their investigation efficiently.
• No Obligation to Investigate Frivolous Disputes: The CRA is not required to investigate your dispute if they determine it is frivolous or irrelevant. However, they must notify you if they are not going to investigate.
• Notification of Results: After the investigation is complete, the CRA must notify you of the results in writing. The notification must include:
  • A statement of the results of the investigation.
  • A copy of your background report, if the investigation resulted in any changes.
  • A description of the procedures used to conduct the investigation.
  • Contact information for the source of the information.
  • A notice of your right to add a statement to your report.

Step 5: Review the Results and Take Further Action if Necessary

Carefully review the results of the CRA’s investigation. There are three possible outcomes:

• The Information is Corrected or Deleted: If the CRA determines that the information was inaccurate, they must correct or delete it from your report. They must also notify anyone who received your report in the past six months (or two years for employment purposes) of the correction. You should also check your report again after a few weeks to ensure the changes have been implemented correctly.
• The Information is Verified: If the CRA verifies that the information is accurate, it will remain on your report. However, you have the right to add a statement to your report explaining your side of the story. This statement is typically limited to 100 words and will be included whenever your report is requested.
• The CRA Fails to Investigate: If the CRA fails to complete its investigation within the allotted timeframe, or if you are dissatisfied with the results of the investigation, you have several options:
  • Add a Consumer Statement: As mentioned above, you have the right to add a consumer statement to your report. This allows you to explain your perspective on the disputed information.
  • Re-dispute the Information: You can re-dispute the information with the CRA, especially if you have new or additional information to support your claim.
  • File a Complaint with the Consumer Financial Protection Bureau (CFPB): The CFPB is a federal agency that enforces consumer financial laws, including the FCRA. You can file a complaint with the CFPB online or by phone.
  • Sue the CRA: If the CRA has violated the FCRA, you may have the right to sue them in federal court. This is a complex legal process, and you should consult with an attorney to determine your options.

Adding a Consumer Statement

If the CRA verifies the information you disputed, but you still believe it is inaccurate or misleading, you have the right to add a consumer statement to your background report. This statement will be included whenever your report is requested and allows you to provide context or explain your side of the story.

• Keep it concise: Consumer statements are typically limited to 100 words, so make sure to be clear and concise in your explanation.
• Focus on the facts: Avoid emotional language or personal attacks. Stick to the facts and explain why you believe the information is inaccurate or misleading.
• Proofread carefully: Before submitting your statement, proofread it carefully for any errors in grammar or spelling.
• Request a copy of your report with the statement: Once the CRA has added your statement to your report, request a copy to ensure it is accurate and complete.

Example Consumer Statement: “While this report shows a misdemeanor charge from 2018, the charge was for a minor offense and was subsequently dismissed after I completed a diversion program. The court records can confirm the dismissal.”

Common Reasons for Background Check Errors

Understanding the common causes of background check errors can help you be more proactive in preventing and addressing them.

• Mistaken Identity: This is a frequent cause of errors, particularly when individuals share similar names or dates of birth. Information from another person’s record may be mistakenly included on your report.
• Inaccurate Court Records: Court records can sometimes contain errors, such as incorrect dates, charges, or dispositions. These errors can then be reflected in your background report.
• Data Entry Errors: Errors can occur when data is entered manually into databases. These errors can be difficult to detect and can lead to inaccurate information on your report.
• Outdated Information: Sometimes, background checks contain outdated information that is no longer accurate. For example, a criminal record that has been expunged may still appear on your report.
• Incomplete Information: Background checks may be incomplete, missing crucial details that provide context or clarification.

Preventing Background Check Errors

While you can’t completely eliminate the possibility of errors, you can take steps to minimize the risk of inaccuracies in your background check.

• Be Accurate When Providing Information: When filling out applications or providing information for background checks, double-check all details for accuracy. Even small errors can lead to problems.
• Monitor Your Credit Report: Regularly check your credit report for any errors or suspicious activity. While not a full background check, it contains similar information.
• Know Your Rights: Familiarize yourself with your rights under the FCRA. This will empower you to take action if you find inaccuracies in your background report.
• Consider Preemptive Background Checks: Before applying for jobs or housing, consider running your own background check to identify any potential issues and address them proactively. Several companies offer this service.
• Keep Accurate Records: Maintain accurate records of your employment history, education, and any legal matters. This will make it easier to provide supporting documentation if you need to dispute an inaccuracy.

When to Consult with an Attorney

While you can often handle a background check dispute on your own, there are certain situations where it may be beneficial to consult with an attorney.

• Complex Legal Issues: If you are dealing with complex legal issues, such as expungement or sealing of records, an attorney can provide valuable guidance.
• Significant Damages: If you have suffered significant damages as a result of an inaccurate background check (e.g., loss of employment, denial of housing), an attorney can help you pursue legal action.
• CRA Non-Compliance: If the CRA is not complying with the FCRA, an attorney can help you enforce your rights.
• You Don’t Understand the Process: If you find the dispute process overwhelming or confusing, an attorney can guide you through the steps and represent you in your dispute.

List of Consumer Reporting Agencies (CRAs)

Here are some of the most common Consumer Reporting Agencies (CRAs) used for background checks. This is not an exhaustive list, but it includes major players. Contact information can change, so always verify the information on the CRA’s official website before sending any correspondence.

• Accurate Background: https://accurate.com/
• Checkr: https://checkr.com/
• Sterling: https://www.sterlingcheck.com/
• HireRight: https://www.hireright.com/
• TransUnion Shareable for Screening: https://www.transunionshareable.com (Note: this is a specific product from TransUnion and not their regular credit reporting service)

Note: Equifax, Experian, and TransUnion are primarily credit bureaus, but they may also provide background screening services. Refer to their specific background screening services (often different websites than their consumer credit reporting sites).

Conclusion

Disputing a background check can seem daunting, but by understanding your rights under the FCRA and following these detailed steps, you can effectively challenge inaccuracies and protect your reputation. Remember to be proactive, thorough, and persistent in your efforts. Don’t hesitate to seek legal assistance if you encounter complex issues or believe your rights have been violated. Taking control of your background information is an important step in securing your future opportunities.