How Far Back Does a Bank Background Check Go?

A bank background check can go back up to 7 years, depending on the type of information being searched. This includes public records, court documents, and financial history.

Typically, a bank will check a person's credit history, which can also go back 7 years. This is because the Fair Credit Reporting Act (FCRA) limits the reporting of negative information to 7 years.

Banks may also search for any outstanding warrants or criminal convictions, which can be found in public records. These searches can go back further than 7 years, often to the person's entire adult life.

Regulations and laws play a crucial role in determining how far back a background check can go. The Fair Credit Reporting Act (FCRA) limits the adverse information a background check can include, prohibiting the reporting of bankruptcies older than 10 years and civil suits, civil judgments, and records of arrest older than 7 years.

Employers must also consider state regulations, which vary from state to state. Currently, nine states have enacted laws that impose additional restrictions on searching a candidate's history, including California, Georgia, Hawaii, Kentucky, Massachusetts, Michigan, New Mexico, New York, and Wisconsin. For example, California Labor Code § 432.7 prohibits employers from asking about an applicant's previous arrests that did not result in convictions.

The FCRA also requires employers to obtain a candidate's written permission before running a background check and limits the lookback period for certain types of information. Employers must consider the Equal Employment Opportunity Commission's (EEOC) recommendation for assessing a candidate's criminal history, which includes considering the nature and seriousness of the conviction, how much time has passed since the conviction or sentence completion, and the nature of the job.

Some states have additional regulations that employers must adhere to, such as ban-the-box laws that forbid employers from asking candidates about their criminal history on the job application. At least 16 states and dozens of counties and cities have such laws in effect.

The Fair Credit Reporting Act (FCRA) is a federal regulation that protects individuals' private information, including bill payment history, current debts, past loans, criminal records, and employment history. This law requires employers to obtain written permission from candidates before running background checks.

Employers must also comply with the FCRA's lookback period restrictions. Under the FCRA, consumer reporting agencies cannot report bankruptcies older than 10 years, civil suits, civil judgments, and records of arrest older than 7 years, paid tax liens older than 7 years, collections accounts older than 7 years, and other adverse information older than 7 years.

Employers must use the "nature-time-nature" test when assessing a candidate's criminal history. This involves considering the nature and seriousness of the conviction, how much time has passed since the conviction or sentence completion, and the nature of the job.

The Equal Employment Opportunity Commission (EEOC) also recommends that employers consider the following factors when evaluating a candidate's criminal record: the nature and seriousness of the conviction, how much time has passed since the conviction or sentence completion, and the nature of the job.

Employers are restricted as to how far back specific background checks can go in a candidate's or employee's history. The FCRA prohibits consumer reporting agencies from reporting the following information in a consumer report or background check:

Employers must also obtain explicit and informed consent from the individual being screened before initiating a background check. This consent should clearly specify the purpose of the background check, the types of information to be gathered, and the rights of the individual with regard to the process and its results.

State laws play a crucial role in regulating background checks. California and Hawaii limit reporting of felony convictions to seven years, while Kansas and Maryland restrict reporting to seven years unless the candidate's expected annual salary will be $20,000 or more.

Some states have specific requirements for what information can be reported. For example, California Labor Code § 432.7 prohibits employers from asking about previous arrests that did not result in convictions, sealed or dismissed convictions, or any completed diversion programs.

In addition to these restrictions, many states have enacted laws that impose additional requirements on employers. For instance, Georgia prohibits employers from disqualifying an individual for employment on the basis of a criminal record that was successfully discharged under the state's First Offender Act.

Here are the 9 states that are considered 7-year background check states:

It's essential to note that these states have specific requirements and restrictions that employers must adhere to when conducting background checks.

The lookback period for a bank background check can vary depending on several factors. The Fair Credit Reporting Act (FCRA) dictates that adverse information older than seven years cannot be included in a background check.

Employers must follow the FCRA's seven-year lookback rule, which applies to tax liens, accounts in collections, civil suits or related judgments, and arrest records. This rule is a federal law that applies across the country.

The scope of a background check can also be influenced by industry-specific requirements, such as those in the healthcare or finance sectors. These industries may have more stringent background check requirements due to the sensitive nature of their work.

In Florida, Level 2 background checks involve a fingerprint-based search of state and national criminal records, with an indefinite lookback period. However, some drug offenses are only included if they occurred within the last five years.

The FCRA's Seven-Year Rule also applies to Level 2 background checks in Florida. This means that employers cannot consider arrests older than seven years, even if they are included in the Level 2 check.

Some states have their own laws restricting the lookback period for criminal checks. For example, California limits the reporting of criminal convictions to seven years, while Hawaii prohibits the reporting of felony convictions older than seven years.

Here's a list of states with lookback restrictions for criminal checks:

Employers should also consider the time since a conviction when evaluating a candidate's background.

Criminal history and security play a significant role in bank background checks. The Fair Credit Reporting Act (FCRA) has no rules restricting criminal convictions on background checks, so misdemeanors and felonies can be reported as long as they remain on an individual's record.

In most states, there is no limit to how far back you can check for a criminal record. For instance, if a candidate was arrested for shoplifting 20 years ago, it may still show up on a criminal record check. However, some states do limit the lookback period for criminal records to 7 or 10 years.

The default scope for a criminal history search is 7 years, but extended scope searches (10-year, full criminal history) can be supported at an additional cost. This 7-year lookback rule applies to county, state, and federal criminal checks, but may vary depending on the state or local laws.

Verifications are a crucial part of the hiring process. They can span a candidate's entire lifetime, verifying job application data, including educational history, employment history, reference checks, personal information, and professional licenses.

Employment verifications are considered "neutral" by the FTC, which means there's no 7-year limitation on reporting discrepancies in employment history. Even if the employment termination date is more than seven years ago, consumer reporting agencies can report discrepant employment dates and job titles.

Employers should understand whether their screening provider is withholding discrepant results from the background check when the dates and information being verified are older than seven years. This is especially important for education verifications, as verifying employment history and education is critical to determining a candidate's qualifications.

Criminal history plays a significant role in background checks, and it's essential to understand the rules and regulations surrounding it.

The Fair Credit Reporting Act (FCRA) has no rules that restrict criminal convictions on a background check, meaning misdemeanors and felonies can be reported while they remain on an individual's record.

Arrests, convictions, warrants, and other criminal court records can be included in a background check, providing valuable information about a candidate's past.

In most states, there is no limit to how far back you can check for a criminal record, but some states limit the lookback period to 7 or 10 years.

Felony criminal convictions may be reported indefinitely on background checks, except in states that impose seven-year limits on reporting of criminal records or where other local restrictions apply.

Misdemeanor records are typically reported for seven years at the state and county levels, but older records may be reported if readily accessible.

Juvenile records and other court-sealed documents typically do not appear in criminal background checks.

Here's a breakdown of the types of criminal background checks and their scope:

It's worth noting that some background check companies may offer extended scope searches (10-year, full criminal history) at an additional cost.

Some industries have specific background check requirements due to the nature of their work and the level of responsibility involved.

For example, the healthcare industry places a significant emphasis on patient safety and care, requiring extensive background checks for healthcare professionals, including doctors, nurses, and pharmacists.

Financial institutions conduct comprehensive background checks to verify the integrity and financial history of potential employees, preventing fraudulent activities and protecting customer interests.

Government agencies, law enforcement, and security companies require stringent background checks for employees who handle classified information or have access to sensitive facilities.

Background checks for teachers, school staff, and childcare providers are essential to identify any history of misconduct or criminal offenses that may pose a risk to children in childcare facilities and schools.

The transportation industry, particularly aviation, has strict background check requirements for pilots, air traffic controllers, and airport personnel to ensure the safety and security of passengers.

Government contractors may be required to conduct background checks on their employees as part of the contract’s security requirements to protect sensitive government information and facilities.

Here's a list of industries with specific background check requirements:

Employers nationwide must follow the Fair Credit Reporting Act (FCRA) requirements for background checks. This federal law applies to all employers, regardless of location.

The most common lookback period in the US is seven years, as per the FCRA, which excludes adverse information older than seven years from background checks. This includes tax liens, accounts in collections, civil suits or related judgments, and arrest records.

Conducting background checks requires strict adherence to local, state, and federal laws, including compliance with the FCRA in certain cases. Employers must also maintain confidentiality and use information solely for its intended purpose.

Here are some key considerations for employers: