Background screening companies take note: the Federal Trade Commission (FTC) is watching and taking action.

Ensure Background Report Accuracy

HireRight Solutions, Inc., one of the country’s largest background screening companies, recently paid $2.6 million to settle a lawsuit brought by the FTC. The FTC alleged that HireRight violated the Fair Credit Reporting Act (FCRA) multiple times in the following ways: by neglecting to ensure the accuracy of its background reports, not providing consumers with copies of their reports, and not reinvestigating disputes brought by consumers. The lawsuit is significant, because according to the FTC, it was the first time the FTC charged a background screening company with violating the FCRA.

Provide Consumers with Report Copies

It’s a warning to all background screening companies that just reporting information without verifying the accuracy is not good enough. The FTC alleged that HireRight did not take “reasonable steps” to make sure that the information it provided was correct. Examples of this included citing the same criminal offense multiple times, reporting on records that were expunged, and listing convictions for other people – not the candidate. One of the things employers expect, and what a background screening company should provide, is accurate and verified information. Without this, employers cannot make informed decisions and risk potential liability from the actions of their background screening services provider.

Reinvestigate Consumer Disputes

With this case, the FTC has issued a challenge to all background screening organizations and clearly indicated that it’s not just employers who will be held responsible for FCRA violations. Background check companies are being scrutinized to ensure that they report accurate information and comply with FCRA rules as well.

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Dennis Drellishak Sr. is recognized as a leading authority in the business information services industry with more than 30 years of experience in high-level business investigations, pre-employment screenings and loss prevention programs. His talent for combining innovative technology with superior customer service has resulted in the development of ground-breaking client tools and services.

Under Dennis’s leadership, Corporate Screening Services, Inc.(www.CorporateScreening.com) has been named one of the top screening firms in the country, has been repeatedly recognized as one of the Weatherhead 100 fastest-growing companies in Northeast Ohio, and has received many other awards. Corporate Screening is a founding member of NAPBS (National Association of Professional Background Screeners).