CFPB Market Snapshot: Background Screening Reports (Oct. 2019)

Employers use background screening reports to evaluate prospective and current employees for employment, promotion, reassignment, or retention. Background screening reports may include many types of information, including credit history, public records from civil court proceedings – such as bankruptcy filings and other court documents – and information related to employment history. This report describes (i) the background screening industry; (ii) how background screening reports, including criminal history information, are generated; (iii) how screening reports are used by employers; (iv) challenges related to accuracy and dispute resolution, and (v) developments in the market.  While background screening reports can include various types of information and be used for several purposes, this paper focuses on reports used for employment purposes that include criminal history information.