Failed Background Check & Lost Job

[NickL30]

What is the name of your state (only U.S. law)? Massachusetts

I got hired thru an employment agency for a temporary contract position with a large financial institution here in Boston.

The day before the job was to start, I got a call from the recruiter saying that I 'failed the background check' and that regrettably the assignment was off. She never informed me prior that the position was subject to passing a background check & the criterion as well as providing an explanation if the information was incorrect.

I noticed on my credit report there is an incorrect Tax Lien being reported that I have been disputing with the credit bureaus & I have documentation to support my case. There are also several accounts that are not mine and my current/previous employer are incorrect.

Can the job really be cancelled like that.. I was told I would be receiving a letter with the actual reasons and I could write a letter of explanation when I receive that letter but for now they are going forward to 'backfill' the position.

 

[>Charlotte<]

Yes, they can refuse to hire you, even if the information on the background check is incorrect. If you can get the information corrected perhaps they will reconsider, but by the time you're able to do that the position will probably already be filled. In any case, HR isn't legally obligated to hire you under any circumstances.

 

[swalsh411]

It could also be from a erroneous criminal entry.

 

[NickL30]

I am scared that the information is incorrect..

I checked my Transunion report (the report with the inquiry from this bkground check company they just used one)

Current/Previous employer are wrong. Previous employer is a college I never attended nor even applied to, current employer is a company I have never even heard of

There is a judgement/paid tax lien from 2009 that says 'judgement satisfied for $1265 liability $0 as of Oct 2009. I was never served nor informed of any type of action.

On the form that I signed, it says I have the right to dispute the findings and that I would receive a Pre adverse action letter.

Does this mean that they cannot cancel the assignment during the time this is being disputed??

I have had background checks in the past year for temporary work in the same industry and this has never been an issue

 

[Betty]

You have the right to dispute the information on the background check with the reporting agency. However, the assignment can still be cancelled/they can still refuse to hire you based on the background info already received (or for any reason) while you dispute the information. If you get it corrected, they "may" consider you for a job if any are available. They don't have to consider you for a job or hire you just because the info gets corrected.

 

[NickL30]

You have the right to dispute the information on the background check with the reporting agency. However, the assignment can still be cancelled/they can still refuse to hire you based on the background info already received (or for any reason) while you dispute the information. If you get it corrected, they "may" consider you for a job if any are available. They don't have to consider you for a job or hire you just because the info gets corrected.

I received a letter but from Transunion saying that a Public Record was found in my credit file from a request made by the background check company. They (the background check co.) never sent any adverse action letter as required by law.
I have stated and can prove by information from the court that this information is erroneous at the least.
remember that 80% of credit reports contain errors. I cannot believe that if I can prove it is incorrect the company is still just going to 'move on'.

On a side note -- recruiters who place people in these types of jobs think that by not responding (even when they are wrong) to email, screening calls (then sending to voicemail) the person will just get the message. I intend to fight this once I have the necessary supporting documents

 

[pattytx]

Just to reiterate/clarify. IF the employer had a third party do the background check AND the employer declined to hire based on the information on the background THEN the employer is the one who has to provide the copy of the report. Not the third party. The third party has no obligation to the applicant.

 

[Betty]

This is actually the way it goes if the employer relies on a consumer report for an adverse action.

Before they take the adverse action, they have to give the individual a pre-adverse action disclosure that includes a copy of the consumer report & let them know their rights under the Fair Credit Reporting Act. (This would be in a document.)

After they have taken the adverse action, the must give the person the name/address/phone # of the CRA (but let the person know it wasn't the CRA that took the adverse action - it would have been the employer). They need to give notice to the person that they can contact the CRA & dispute any information they believe is not accurate. The individual can usually request another free report if requested within 60 days.

That's about it.

 

[NickL30]

This is actually the way it goes if the employer relies on a consumer report for an adverse action.

Before they take the adverse action, they have to give the individual a pre-adverse action disclosure that includes a copy of the consumer report & let them know their rights under the Fair Credit Reporting Act. (This would be in a document.)

After they have taken the adverse action, the must give the person the name/address/phone # of the CRA (but let the person know it wasn't the CRA that took the adverse action - it would have been the employer). They need to give notice to the person that they can contact the CRA & dispute any information they believe is not accurate. The individual can usually request another free report if requested within 60 days.

That's about it.

Obviously this wasn't done. The recruiting agency told me that the background company issues a 'Pass/Fail' based on the parameters given by the client company (the one I would be working for).

I received neither (in terms of adverse action letters) only a letter directly from Transunion telling me a inquiry was made in connection with an employment background investigation.

What is worse is that the recruiter (the company that would be paying me) either A) doesn't know how its done (despite the fact that she 'supposedly' has worked in the industry for over 10 years), B) playing dumb (people do this when they feel any type of confrontation), C) Both A&B hoping I will just 'go away'.

Not to mention that the information is erroneous. All the recruiter said is that they need to backfill my role in this position and I should contact the background check company directly to get the info straightened out.