The Consumer Financial Protection Bureau (CFPB) issued guidance to consumer reporting companies to address inaccuracies in background check reports and problems in credit file sharing practices.
According to the agency, the advisory opinion on background check reports “highlights that those reports must be complete, accurate, and free of information that is duplicative, outdated, expunged, sealed, or otherwise legally restricted from public access.” This advisory was inspired by a 2023 public inquiry by the CFPB and Federal Trade Commission that sought input people’s experiences with background checks used to screen potential tenants for rental housing.
The CFPB added that its advisory opinion on file disclosure “highlights that people are entitled to receive all information contained in their consumer file at the time they request it, along with the source or sources of the information contained within, including both the original and any intermediary or vendor source.”
“Background check and other consumer reporting companies do not get to create flawed reputational dossiers that are then hidden from consumer view,” said CFPB Director Rohit Chopra. “Background check reports, and all other consumer reports, must be accurate, up to date, and available to the people that the reports are about.”
;
