Employers often conduct background or credit checks on job applicants to assess their suitability as trustworthy employees. However, when an applicant has become the victim of identity theft, thieves can cause significant damage to their credit reports and personal reputation without the victim knowing about the harm to their reputation until a prospective employer denies their job application.
Fortunately, individuals have various legal protections and tools they can use to respond to employment denials caused by identity theft. An experienced lawyer can help you evaluate your legal rights after an employer has denied you a job due to an adverse background check or credit report containing false information due to identity theft. Contact Lehrman Law for an initial case evaluation with a consumer protection attorney to better understand how identity theft may adversely affect your employment opportunities and discuss your options.
How Identity Theft Leads to Employment Denials
Identity theft can damage your personal records and credit reports in various ways. When you apply for a job, an employer may conduct a background check that includes these records and reports. Many employers, including those in industries such as finance, healthcare, education, and public service, use background checks and credit reports to assess an applicant’s suitability for the company. Negative marks on your records caused by identity thieves may lead an employer to decline to hire you if they assume that your actions or behavior led to those negative marks on your record. Some of the ways that identity theft can harm your record for employment purposes include:
- Thieves using your identity to commit crimes, which can lead to erroneous criminal allegations against you or arrest warrants
- Misuse of your identity for financial transactions, which can damage your credit report and score
- Use of your identity by thieves for fraudulent employment or government benefit applications
As a result, inaccurate details on your personal or credit reports caused by identity theft may disqualify you from employment. You may not even realize that an employer rejected your application due to entries in your records or credit reports resulting from thieves misusing your identity or financial information.
Your Rights Under Federal and State Law
Federal and state law give applicants for employment certain rights and tools they can use to protect their interests from the potential harm caused by identity theft. For example, under the federal Fair Credit Reporting Act, an employer must obtain an applicant’s consent before running a background check or pulling their credit report. Employers must provide applicants with a copy of the results of any background checks and notify them of an adverse decision on their application before denying them employment.
Applicants who believe that negative marks on their reports resulted from identity theft or errors by furnishers of information have the right under the FCRA to file a dispute with consumer reporting agencies to contest alleged fraudulent or inaccurate information or activity on their credit reports. Employers may not deny employment to an applicant based on information that the applicant has identified as false or unverified. Victims of suspected identity theft can also file reports with consumer reporting agencies to highlight information caused by identity theft and request that the agencies block or remove such information.
Furthermore, Florida law allows a person who suspects that thieves may have compromised their personal identifying information or financial details to place a security freeze on their credit reports, preventing the opening of any new credit accounts. This can bar identity thieves from performing damaging financial transactions using a person’s credit.
What to Do If You Lose Out on a Job Due to Identity Theft
If a prospective employer has denied your job application and you suspect that the denial may have occurred due to theft of your identity or financial information, take the following steps to protect your rights and interests:
- Request Information in Writing – You have the right under federal law to request that a prospective employer supply you with any credit reports or background check documents the employer received for you. You also have the right to request that the employer disclose the reason(s) why it denied your employment application.
- Review and Dispute Errors – Review the background check documents supplied by the prospective employer and obtain a free copy of your credit report to check for mistakes or unfamiliar information, which may indicate that you have become the victim of identity theft. You can notify the prospective employer of false or unverified information on your credit report or background check. You should also dispute such information with the credit reporting agencies, which must forward the dispute to the business that furnished the information and verify the report from the furnisher.
- File Identity Theft Complaints – Report any suspected identity theft to your local law enforcement agency and to the Federal Trade Commission. You may need copies of your report to the authorities when contesting information with the credit reporting agencies or financial institutions.
- Freeze Your Credit Report – When you suspect that someone may have compromised your identity or financial information, contact the credit bureaus to freeze your credit, which blocks financial institutions from running a check on your credit in connection with applications for credit cards or other financial products. You should also contact your banks to freeze your existing accounts and obtain new cards or accounts.
- Consult an Attorney – Finally, speak to a consumer protection lawyer about your legal rights and protections under state and federal law, and discuss your options for addressing damaging information on your credit report or background check caused by identity theft.
Contact Our Firm Today for Advice and Advocacy
If identity theft has caused significant damage to your credit report and caused you to lose employment opportunities, contact Lehrman Law today for a confidential consultation with a consumer protection attorney. Let’s discuss your legal options if you had an employment application rejected due to negative marks on your credit report.