Background Checks with Name-Only Matching Spell Trouble for Employers

CFPB guidance targets cases of mistaken identity during background screening.

Meet Michael Jones.  He wants a job as a youth minister, high school basketball coach, or janitor at a daycare facility.  

If you’re Michael’s potential employer, you know that you need to perform a background check to ensure the safety of the children in your building.  

But there’s a problem – and it’s not that Michael Jones is hiding something from you.

Michael Jones is a common name.  Maybe it’s not as common as John Smith, but how many Michael Jones’ could show up in a background check?  Plus, all of these Michael Jones’ have legal protections.  

If you deny one of them employment because of a screening violation, you could face penalties.  You need to screen each and every applicant, of course, but you need to do so in a way that follows the rules.

Background Screening Guidance

So, who makes these rules – and what, specifically, are they?  For that matter, does your background check company know what the rules are and how they keep changing?  

You’ve probably heard of the Federal Trade Commission (FTC), and maybe you already know that the FTC is a rule-maker in this area.  But did you know that the Consumer Financial Protection Bureau (CFPB) also has an important role to play?

That’s right.  The same agency that protects consumers from unscrupulous lenders also has a say about what’s fair when potential employers perform background checks.  

That’s because background screeners are considered to be consumer reporting agencies (CRA) – just like Equifax, TransUnion, and Experian.  In other words, ignoring CFPB guidance could mean trouble under the Fair Credit Reporting Act (FCRA).

Meanwhile, Michael Jones is waiting.  As a job applicant, what rights does he have?

According to a November 4, 2021, CFPB advisory opinion, Michael (and all of us) deserve protection from background screeners who use name-matching only.  

The problem with depending upon name-matching alone is that it doesn’t capture enough data points to ensure a screen contains the right person.

So, will you deny employment if the report you receive says that Michael Jones is a sex offender?  

Yes, but can you be sure this report is about the right Michael Jones and not some other person with the same name.

In New York State, there are also laws to consider, such as Article 23-A, which prohibits an employer from unfairly discriminating against a person previously convicted of one or more criminal offenses.

New York State’s Best Background Check Company

Commercial Investigations understands state and federal rules about background screening, including recent CFPB guidance about name-only matching procedures.  

As a licensed private investigation agency, we can access more data sets for more accurate results.  We don’t just look at names.  

We look at multiple factors that include date of birth, social security number, and physical addresses.  We use Human Intervention. 

The data sets we use aren’t available to just anyone.  Access is limited to licensed private investigation agencies, and our company is audited regularly to tough standards.  We’re extremely compliance-oriented, so we’re willing to explain to you what’s required.  

We never rely upon automated screenings, and we recommend our clients always perform individual assessments on a case-by-case basis.  We’ve even developed a tool to help our clients called CI’s Decision Matrix.

Commercial Investigations works in ways that keep you safe.  Yet, we also move quickly.  

At a time when good workers are hard to find, you don’t want promising applicants to take jobs elsewhere because you can’t perform background screens fast enough.  

Yet, you can’t afford to move too hastily and introduce unnecessary risks.

Written by Michelle Pyan