A background report contains an error: what notices and records matter?

The federal reporting process

Under the federal Fair Credit Reporting Act (FCRA), an employer that obtains a background report from a third-party reporting company must first obtain your written permission. The employer must also provide a standalone written notice stating that the report may be used for hiring, promotion, or termination decisions. If the employer intends to take an adverse action—such as not hiring you—because of information in the report, it must give you a copy of the report and a summary of your FCRA rights before making the final decision. After the adverse decision, you have the right to dispute inaccurate or incomplete information with the reporting company and to request an additional free report within 60 days of the employer's decision. This federal process applies only when a third-party reporting company is used; it does not cover informal reference checks or an employer's own internal records.

Build an error table

For each disputed item, create a clear record that separates three things: what the report currently says, what you believe is correct, and which document supports your version. Employment dates, records of people with similar names, and incomplete case outcomes are different issues and should be handled separately. Ask the reporting company for a secure method to submit your dispute and supporting documents. Avoid putting identification numbers, such as your Social Security number, in an ordinary email unless the company's verified process specifically requires it. Keep a copy of each version of the report you receive, including the original and any corrected versions.

Send the correction to the right party

The reporting company is responsible for correcting errors in its report; the employer is responsible for making the hiring decision. You should notify both parties through their stated channels. Ask the reporting company to confirm that it received your evidence and to send a copy of any corrected report to the employer. Also ask the employer whether your application decision is still pending or has become final, rather than assuming that a delay means rejection. Keep records of all communications, including dates and the names of the channels you used.

Questions to ask before consenting

Before you sign a background check consent form, ask which reporting company will conduct the check, what types of information it will cover, how you can obtain a copy of the report, and who handles corrections. Also ask whether the employer will provide the required notices before taking any adverse action. A corrected report does not guarantee that you will be hired. Local laws in your city or state may restrict when or how an employer can ask about criminal or credit history, and the specific legal requirements of the job may also affect what the employer can consider.

A hypothetical example of a dispute

Suppose you applied for a warehouse position. The employer used a background reporting company, and the report listed a criminal conviction from a different person with the same name. You have a court document showing that the conviction belongs to someone else. You contact the reporting company through its online dispute portal, attach the court document, and ask for confirmation of receipt. You also email the employer's HR contact to ask whether the decision is pending or final. After the reporting company revises the report, you review the corrected version to confirm the error is gone, and you ask the company to send the corrected report to the employer. In this situation, what specific evidence would you need to prove that the conviction belongs to another person?

Next steps if the issue remains unresolved

If the reporting company does not correct the error or the employer does not respond, you can report the issue to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov. Describe the consent, notice or reporting problem accurately. Reporting to the FTC does not itself correct the report or guarantee intervention in an individual hiring decision. If you need legal advice, consult an attorney and bring your error table, copies of all report versions, your supporting documents, and a record of your communications with both the reporting company and the employer.

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