Why Your Background Reports Strategy Could Be Costing You A Lawsuit

An increasing number of businesses are running background checks as part of their hiring process. Background reports in the past were done by a government agency, but nowadays many private agencies can perform the same task. Results of a background check will usually report past employment verification, credit history, and criminal history.

What types of background report services are available to me?

Businesses have two choices really and it depends on how in-depth you want or need to be. The choice is really between a paid service provider or conducting your own online background checks. There are pros and cons with both that you should consider.

What do I get from a full service background report company?

An independent company will offer a full comprehensive screening solution which is totally independent. All you need to do is supply the name of the candidate and they do the rest. They are governed by the Fair Credit Reporting Act (FCRA) which includes getting the candidate’s consent and giving them full access to the report. This is by far the biggest advantage of employing a background reports company. Not complying with the FCRA can open you up to potential lawsuits and fines. The other advantage is that these companies specialize in this field of research and may well have more access to reports and data. The biggest downside is of course, the cost and time they take to complete.

What about if I decide to conduct my own background report?

This is your other option and there are many websites out there that are simple and easy to use. Just fill in the name of the candidate and for a small pay-as-you-go fee (usually ranging from approx. $10-$50), you will be provided with a varied range of background data on that person. The biggest advantage of these sites are that you are provided with instant information at a relatively low cost. The downside being that they are not required by law to be FCRA compliant.