CFPB Market Snapshot Provides Overview of Background Check Industry

On Oct. 3, 2019, the Consumer Financial Protection Bureau (CFPB), the agency enforcing federal consumer financial laws, released their background screening report snapshot, which provides an overview of companies involved in the background screening industry. The CFPB acknowledges three critical drivers of growth: increased demand due to improvements in the labor market, the decline in rental vacancy rates, and expanded online services.  

The CFPB report focuses on screenings that include criminal record checks. According to the CFPB report, “72 percent of employers conduct background checks; 82 percent of those that do background checks include criminal background checks.”  

The report also highlights the background screening industry, how screening reports are generated, and how screening reports are used by employers. It is estimated that for 2019, there are “1,954 background screening companies with revenue of $3.2 billion,” according to the CFPB.  

The report includes developments in the background screening industry and challenges that are related to accuracy and dispute resolution. One of these challenges is inconsistent systems across jurisdictions for reporting criminal records, due to more than 13,000 state courts in the U.S. with an estimated 110,235,200 persons in their criminal history files. 

Click here for the full report. 

Contact us today to see how SELECTiON.COM® can take your employment background check process to the next level. 

NOTE: The contents of this article are not legal advice for your particular situation. You should neither act nor rely upon anything stated in this article without first consulting your legal counsel. 

Article by SELECTiON.COM®

Founded in 1991, SELECTiON.COM® is one of the Nation’s leading providers of pre-employment background screening services. We offer the largest network of in-house researchers, the fastest turnaround on criminal background checks and drug screening, and unsurpassed customer service. Our web application, FASTRAX Select™, allows employers to verify an applicant’s background check information quickly and accurately from the convenience of a personal computer. Average turnaround time on criminal background searches is 2 business days. Thousands of employers nationwide rely on SELECTiON.COM® to help them make smart hiring decisions.