Navigating the Consumer Dispute Process: A Guide for Employers

At Verified First, we are committed to providing the most accurate and up-to-date information possible to help you make informed hiring decisions. A critical component of this commitment is the consumer dispute process, a right guaranteed to every candidate under the Fair Credit Reporting Act (FCRA).

While disputes are not an everyday occurrence, understanding the process is essential for maintaining a fair and legally compliant hiring practice. This guide will walk you through what a dispute is, its purpose, and your role as an employer.

What is a Consumer Dispute?

A consumer dispute is a formal process initiated by a candidate who believes that information contained in their background check report is inaccurate or incomplete. The FCRA gives every individual the right to challenge the information in their consumer report and have it reinvestigated for accuracy.

A candidate might initiate a dispute for several reasons, such as:

• A criminal record that belongs to someone else with a similar name.
• An expunged or sealed record that is still appearing.
• Incorrect dates for employment or education history.
• A duplicated charge or incorrect disposition of a case.

The Purpose of the Dispute Process

The primary goal of the dispute process is to ensure maximum possible accuracy. It serves as a crucial check-and-balance in the screening system, providing a mechanism to correct errors that could unfairly impact a candidate's employment opportunities.

This legally mandated process protects all parties involved:

• For the Candidate: It provides a clear path to correct potential inaccuracies in their report.
• For the Employer: It helps ensure that your hiring decisions are based on correct information, reducing legal risk and promoting fair hiring.
• For the Screening Partner: It upholds our commitment to compliance and accuracy.

The Step-by-Step Reinvestigation Process

When a candidate disputes information in a report provided by Verified First, we follow a clear, FCRA-compliant procedure.

1. A Dispute is Initiated: The candidate contacts us directly using the information provided in their copy of the background check report. They must identify the specific information they believe is incorrect.

2. Reinvestigation Begins: Our compliance team immediately opens a formal reinvestigation. We will contact the original source of the information—such as the courthouse, a previous employer, or an educational institution—to re-verify the disputed item.

3. Notification to You, the Client: We will notify you that a dispute has been filed on the candidate's report, and your file will be flagged as in dispute.

4. How Long Does It Last? The 30-Day Timeline.

Under the FCRA, consumer reporting agencies like Verified First have a responsibility to resolve disputes in a timely manner. The standard timeframe is typically 30 days from the date the candidate initiates the dispute.

While many reinvestigations are completed much faster, the 30-day period allows for the time it may take to receive responses from courts, employers, or academic institutions, which may have their own processing delays. In some specific circumstances, this period may be extended to 45 days.

5. The Outcome and Final Notification: Once the reinvestigation is complete, one of three outcomes will occur:

• Information is Verified as Accurate: The original information is confirmed by the source. The report will remain unchanged.
• Information is Inaccurate: The information is found to be incorrect or incomplete. The candidate's report will be updated or amended to reflect the correct information.
• Information Cannot be Verified: If the original source can no longer verify the information, it will be removed from the report.

Upon completion, Verified First will send the candidate a written notification of the outcome, including a free copy of their revised report if any changes were made. You, our client, will also receive the updated report and a notification that the dispute process is complete.

Your Role and Responsibilities as an Employer

Your cooperation is key to a smooth and compliant dispute process. Here are your primary responsibilities:

• Direct the Candidate to Us: If a candidate expresses concern about their background check results to you, do not attempt to investigate it yourself. Direct them to the contact information for Verified First  provided on their report to initiate the formal dispute process.
• Pause the Hiring Decision: As mentioned, you should not make a final decision—to hire or not to hire—until the dispute is resolved. The information under review could be material to your decision, and moving forward could be seen as a violation of the candidate's FCRA rights.
• Await the Final Report: Once the process is complete, you can proceed with your hiring decision based on the final, verified report. Remember to follow the proper adverse action process if you still intend to move in a different direction based on the contents of the final report.

How do I know a file was disputed?

Any file under a consumer dispute will be clearly tagged with Dispute In Progress or Dispute Complete, providing you with immediate visibility into the file's current state.

To quickly find any files in a dispute status, you can select the new ‘Disputes’ category in your left hand Navigation menu or use “Orders Reporting”. By clicking the gear icon, select the Reporting tab and then Orders Reporting. From there, switch the dispute dropdown to ‘yes’ to filter any files where a dispute is in progress or completed.  .

We understand that a dispute can feel like a delay, but it is an integral part of a responsible and fair screening program. Our dedicated team ensures every dispute is handled with the diligence it deserves, reaffirming our mutual commitment to accuracy and compliance.

If you have any questions, please reach out to Client Services for further assistance.

The information and opinions expressed are for educational purposes only and are based 
on current practice, industry related knowledge and business expertise. The information
provided shall not be construed as legal advice, express or implied. 

If you have any further questions, or need a product enabled on your account, 
please contact Verified First Client Services for assistance.

Call 844-709-2708 or email clientservices@verifiedfirst.com