Background check companies must complete these records as accurately as possible, according to the FCRA. In addition to keeping up with background checks (roughly 1.5 million per month), Checkr is facing several FCRA lawsuits from people claiming that service has published incorrect background reports, costing people their current jobs and future employment.
According to the Fair Credit Reporting Act (FCRA), background check companies must complete these records as accurately as possible. However, consumer reporting giants like Checkr have been known to prioritize speed over accuracy when processing millions of checks for their customers each year. The company serves over 100,000 employers and promises results in just a few minutes. But what does this mean for consumers?
Has Checkr Faced Lawsuits for Bad Background Checks?
During the past five years, Checkr has faced at least 80 lawsuits related to the Fair Credit Reporting Act. Even though 80 lawsuits out of 1.5 million might not seem like much, most of these cases are due to consumers not knowing their rights under the FCRA. The 80 lawsuits make Checkr the most frequently sued background check company.
It is also common for companies that frequently use Checkr or its subsidiaries, like GoodHire, to be sued. Specifically, Uber is facing a class action lawsuit alleging that Checkr uses criminal history reports to determine drivers’ work eligibility.
What Are Common Background Check Errors?
These are the four most common mistakes made during background checks:
- Criminal records that contain incorrect information, such as dispositions (for example, “guilty” instead of “not guilty”) or severity (for example, misdemeanors listed as felonies).
- Reporting out-of-date information: An expunged conviction or criminal record should not appear on a background check.
- Criminal records belonging to someone else with the same or a similar name appear on another person’s report by mistake.
- Mixed files – A mixed file occurs when a background reporting agency includes someone else’s criminal background in your report.
The consequences of any of these mistakes could endanger a person’s current or future employment. If you face adverse action because of an error, you have the right to correct the mistake and hold the background check company accountable.
What Are My Background Check Rights?
The Fair Credit Reporting Act (FCRA), enacted in 1970, is a vital U.S. legislation that safeguards consumers’ rights to accurate, fair, and private information in their credit files. It grants consumers rights such as access to their credit reports, the ability to dispute inaccuracies—usually within 30 days—and controls over who can access their data. The act also requires credit reporting agencies to adopt procedures ensuring accuracy and to investigate disputes, while also protecting against identity theft through features like fraud alerts.
What Can I Do about Checkr Background Check Errors?
If you are denied a job due to errors in your background check, follow these steps.
1. Request a copy of the background report. Even if the employer declined your application, you have a legal right to the information.
2. Dispute the report with the background reporting agency. Maintain an accurate record of any communication with the company.
3. Wait for the agency. They have 30 days to investigate the claim and five days to notify you of the results.
4. Opt out of arbitration if applicable to preserve your legal rights.
5. Contact a consumer protection attorney. If your claim is not adequately investigated, or the results do not represent accurate information, don’t delay your legal action.
Filing a Lawsuit Against Checkr
Companies conducting background checks during hiring must ensure these checks are accurate, efficient, and fair. Checkr background checks should never result in losing a job opportunity because of false or outdated data. If you’ve been harmed by an unfair background check that the company refuses to correct, contact us. Send our experienced consumer protection attorneys an email through our contact page. Provide as much detailed information as possible, and we will assess your case.
