Background checks tell a powerful story—a story that can significantly impact employment, residence, and reputation. The accuracy of each background check is very important.
For this reason, reputable screening companies place considerable emphasis on quality assurance and compliance with the Fair Credit Reporting Act (FCRA)—the federal law that protects consumers from erroneous consumer report information.
But even with iron-clad QA protocols in place, there will always be the occasional error. The mitigation of these errors is a constant pursuit, but the elimination of them is a bit unrealistic.
So, what happens when an error occurs, or perhaps a candidate takes issue with and wishes to dispute accurate information on their background check? The FCRA outlines a fairly rigid process that screening companies must carefully follow.
Here are the basics.
NOTE: The following information applies to all CRAs, including background screening companies and credit bureaus. This article is purely informational and claims no actionable legal basis.
Step 1: Document the Formal Dispute
If a candidate wishes to dispute information on their background check, a formal dispute must be initiated and logged. A notice of dispute can be given directly by the consumer or indirectly, such as from a prospective employer or reseller. However, a request for dispute must be clearly communicated to the CRA, as it will initiate a formal process. While the employer must allow the candidate time to initiate a dispute (typically five business days) and refrain from making a hiring decision until the dispute is resolved, the responsibility to dispute the report ultimately lies with the candidate and the CRA. It is also the responsibility of the CRA to communicate the dispute protocols to the candidate.
It does not matter whether or not there appears to be a good case against the information in question. Consumers have the right to accurate consumer report information and can dispute any information they believe is incorrect.
This reinvestigation must be free of charge.
Learn more about CRA and employer responsibilities under the FCRA.
Step 2: Provide Notice of Dispute Acknowledgment
CRAs must provide a dispute acknowledgment to the consumer within five business days of receiving the dispute notice. This acknowledgment must contain the following:
- Notification of intent to reinvestigate
- Name and address of the individual
- All relevant information regarding the dispute
Step 3: Reinvestigation
Once the dispute has been formally initiated, the consumer reporting agency has 30 days, beginning on the date it receives the notice of dispute, to conduct a thorough reinvestigation of the information in question. This reinvestigation will often require additional information from the consumer.
During this time, a determination must be made as to whether the information is, in fact, inaccurate or incomplete, or if the claim is frivolous or irrelevant.
Investigation Extension
The 30-day investigation period may be extended, but only for up to 15 days. An extension is permitted if the CRA receives additional information from the consumer that is relevant to the reinvestigation.
Step 4: Determination/Notice of Determination
At times, the CRA will determine that the dispute is frivolous or irrelevant. Such a determination is often made on the following bases:
- The accuracy of information was duly verified during the reinvestigation.
- The consumer was unable to provide sufficient information to support their dispute.
If found to be a frivolous or irrelevant dispute, the CRA has five business days to notify the consumer of this finding. Notification may be communicated by mail or other means authorized by the consumer.
If a reinvestigation verifies the inaccuracy of the information in question, a notice of the results must still be provided to the consumer within five business days of the determination. This notice must contain the following:
- A statement of completion.
- Reference to the consumer’s file number and notice of the file’s revision.
- Description of the methods used to determine the accuracy and completeness of information (by consumer request).
- CRA’s contact information, such as address and phone number.
- A notice informing the consumer of their right to add a statement to their file.
Final Thoughts
The key takeaway here is that disputes happen. Whether well-founded or not, there will be files that enter the dispute process, though it is rarely an immediate cause for concern when this happens. The dispute process is in place to make sure that the due process of law is carried out for the protection of consumer rights. If the CRA follows this process as outlined by the FCRA, there is usually nothing for an employer to worry about.
That being said, the first step in reducing dispute-related risk is to mitigate the number of disputes in the first place. When searching for a reliable background screening partner, be sure to discuss their current and past dispute frequencies with them. Such a thing reflects on their observance of the FCRA and attention to quality assurance.
In many cases, background screening companies accredited by the Professional Background Screening Association (PBSA) prioritize compliance. This is because they are beholden to stricter guidelines and compliance standards than those that are not accredited. PBSA-accredited screening companies undergo annual renewal audits, desk audits every two to three years, and comprehensive audits every five years to maintain their accreditation. These audits are aimed at ensuring strict quality assurance protocols that protect employers and candidates, not just the CRA. That is something to consider as well.
For more information on background check dispute resolution, visit us online or contact us today.