Can a Background Check Legally Ask for All My Bank Accounts and Brokerage Information?

In the United States, background checks are typically regulated by the Fair Credit Reporting Act (FCRA) and other privacy laws. Employers can request a variety of information during a background check, but they typically cannot legally require you to disclose all your bank accounts and brokerage information unless it is directly relevant to the position for which you are applying.

Key Points to Consider:

Relevance

Employers can ask for financial information if it is pertinent to the job. For example, positions involving financial responsibilities like accounting or financial management might require a credit check which can include some financial history. It is important to understand the specific job requirements and whether the information being requested is genuinely relevant to your potential role.

Consent

Employers must obtain your consent before conducting a background check that includes sensitive information. You should be informed about what information will be collected and how it will be used. This transparency helps you make an informed decision about what you are comfortable disclosing.

Privacy

Even with consent, there are limits to what can be collected. Employers typically cannot ask for detailed account numbers or sensitive personal financial information beyond what is necessary for the job. The privacy of your financial information is protected, and employers must adhere to strict guidelines to ensure it is handled securely.

State Laws

Some states have additional privacy protections that limit the extent of financial information that can be requested. It's important to check your state's specific laws regarding background checks. These laws can provide additional protections and clarify what information is permissible.

If you feel uncomfortable with the information being requested, you have the right to ask for clarification on why it is needed and how it will be used. This can help you better understand the employer's requirements and ensure that your privacy is respected.

The Working Site for This Problem:

What Information Can They Find with a Background Check?

Under federal law, employers are not prevented from asking about your financial information. However, the federal Employment Opportunity Commission (EEO) laws do prohibit employers from illegally discriminating when using financial information to make employment decisions.

Key Prohibitions:

Employers must not apply a financial requirement differently to different people based on their race, color, national origin, religion, sex, disability, or age, or genetic information. Employers must not have a financial requirement if it does not help the employer to accurately identify responsible and reliable employees and if at the same time the requirement significantly disadvantages people of a particular race, color, national origin, religion, or sex. Employers might have to make an exception to a financial requirement for a person who cannot meet the requirement because of a disability.

Understanding these prohibitions is crucial in ensuring that your rights are protected and that you are not subjected to discriminatory practices.