Limits on Reporting Arrests on Background Checks

Limits on Reporting Arrests on Background Checks

Fair Credit Reporting Act (FCRA)

One of the most misunderstood issues in background reporting is how arrest-only records are treated. An arrest is not proof of guilt, yet many consumer reporting agencies (CRAs) still include them in employment and tenant screening reports. This can derail opportunities even when a case was dismissed, declined, or resolved in your favor.

As criminal defense attorneys in Minnesota, we often fight hard to have charges dismissed. But too often, our clients discover months or years later that the arrest itself lives on in a background check. This article explains how the Fair Credit Reporting Act (FCRA) and Minnesota law limit how arrests can be reported and what remedies exist when those limits are ignored.

Note:  The FCRA is a complex law with many nuances and exceptions.  This article is for reference only, is not legal advice, and is not meant to substitute competent legal advice from an attorney who is fully informed about the facts of your situation.  If you believe your rights have been violated, contact a lawyer without delay to discuss your circumstances.

Federal Framework: The FCRA’s Seven-Year Rule

The FCRA limits the reporting of certain negative information. Under 15 U.S.C. § 1681c(a)(2), “civil suits, civil judgments, and records of arrest that, from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired,” cannot be reported by a consumer reporting agency, unless the position in question pays more than $75,000 annually.

Key points:

• Arrests older than 7 years generally cannot be reported.
• Dismissed charges or cases that did not lead to conviction fall within this prohibition.
• Employers may still ask about arrests directly, but if they rely on a CRA, the report must follow FCRA limits.

Minnesota Specific Protections

Minnesota law provides additional safeguards:

• Minn. Stat. § 364.021 (Ban the Box) prohibits employers from asking about criminal history, including arrests, until later in the hiring process.
• Expungement statutes (Minn. Stat. § 609A.01–609A.04) allow individuals to seal records of dismissed cases or cases resolved in their favor. An expunged arrest record should not appear on any background check.

Why Reporting Arrests Can Be Misleading

An arrest may result from mistaken identity, insufficient evidence, or even unlawful police action. Reporting it without context unfairly prejudices applicants. Reporting non-convictions without disposition details can be inaccurate and misleading, violating the FCRA’s mandate for “maximum possible accuracy” under 15 U.S.C. § 1681e(b).

Connection to Lundgren & Johnson, PSC’s Criminal Defense Practice

The criminal defense attorneys at our firm routinely achieve dismissals, acquittals, or favorable plea outcomes in criminal cases. Yet, unless our clients also pursue expungement and monitor their background reports, these victories may not translate into a clean slate. Our defense work doesn’t end at the courthouse.  We strive to provide a true clean slate for our clients when we are able to, and that can extend to providing resources that ensure our clients’ background checks reflect reality.

Remedies When Violations Occur

If a CRA reports an arrest older than 7 years, or fails to include a disposition, you may:

• File a dispute under 15 U.S.C. § 1681i.
• Request reinvestigation and correction.
• Sue for statutory damages under 15 U.S.C. § 1681n if the violation was willful.

Take Action Today for FCRA Violations

Before deciding what to do, you should consult with an FCRA lawyer who is familiar with background check laws.  He or she can guide you to the right decision for your circumstances, and most importantly, your future.  At Lundgren & Johnson, PSC, we believe that an arrest-only record should not cost anyone an opportunity to live a full and meaningful life, free from the stigma of an outdated arrest.