Getting your record cleared sounds great, but how does it actually impact your life? Record clearing can feel abstract sometimes. However, there are real, tangible benefits to getting your record cleared. Many of these benefits come from protections under the Fair Credit Reporting Act.
One benefit that comes with sealing or expunging your record is that it can limit what information shows up on background checks. A background check is a report that shows information like criminal records, credit history, and more. Employers, landlords, and others use a background check to make decisions about whether to rent to you, offer you a job, or provide other services. If you’re interested in learning more about background checks you can read our blog post about them.
When you clear your record, the cleared records often stop showing up on background checks. This is because of the Fair Credit Reporting Act (FCRA), a federal law that sets rules for these checks and the information in them. Below we’ll explore the FCRA, and how it works with record clearing to improve your life.
What the Fair Credit Reporting Act Does
The FCRA is a law that makes sure Credit Reporting Agencies (CRAs) follow specific rules. Credit Reporting Agencies are the companies that compile background checks. The Fair Credit Reporting Act helps protect you from CRAs violating your rights and misusing your information. The rules in the FCRA make it so that:
- The person using the background check must tell you when they use information in a CRA created report to take an “adverse action,” like denying you a job.
- You have the right to know what appears on your background check.
- After a certain period of time, Credit Reporting Agencies cannot report negative information from your background (some exceptions may apply for certain high-paying or government jobs.)
- Consumer Reporting Agencies have to correct or delete outdated and incorrect information.
- Access to your file is limited.
Legal Enforcement
The Fair Credit Reporting Act applies to all sorts of information, and background checks for many different contexts. The FCRA regulates many of the background checks used by landlords, employers, and others. The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) also protect you and make sure the rules in the FCRA are followed. If a company breaks the rules, you can file a complaint through these agencies.
Why the Fair Credit Reporting Act Matters After You Clear Your Record
In many cases, if you get your record sealed, expunged, or cleared in another way, the law protects you. Consumer Reporting Agencies often cannot include sealed or expunged records on background checks. This is because sealed or expunged records no longer legally ‘count’ in the same way a normal record does. If a Credit Reporting Agency includes sealed or expunged records on a background check, they are breaking the rules against using ‘outdated or incorrect’ information and you may have a right of action against them.
Understanding Eligibility
The law does not protect all types of record relief, however. Whether the FCRA applies depends on the kind of record clearance you get and on your State’s specific laws. Still, if you clear your record thoroughly enough, the law should give you real protection. Cases where a record is
- Expunged
- Sealed
- Otherwise inaccessible to the general public
are often eligible for protection. If your cleared record still shows up on a background check, you can challenge the information in the background report. If that doesn’t work, the FTC and CFPB can help regulate the CRA(s) involved.
Fair Credit Reporting Act Effects
All of these rules and protections make it so that sealing or expunging a record has a real impact on your life. Housing outcomes improve dramatically once the state clears your record. So do wages and employment opportunities. Other situations where people use a background check also become easier to navigate and result in better outcomes.
The Fair Credit Reporting Act is just one way record clearing can create real, tangible effects on people's lives. The record clearing process and its effects are easier to get than they might seem, with the right help. Visit our Fair Credit Reporting Act page and eligibility tool for more information on the FCRA and your record clearing eligibility.
