How to Run a Background Check on Your Customers

There’s an ongoing discourse on home improvement blogs about the precautionary measures customers should take to vet building contractors. What if the tables were turned? How can you, as a contractor, protect yourself against high-risk customers?

Can you run a background check on a prospective customer before signing onto a project? What steps and strategies can you follow? Discover how to protect your business by gaining insight into your potential customers.

How to Run a Background Check on a Potential Customer

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You can access background information through court ledgers. The latter is a data bank containing province-specific civil, criminal, and penal judicial records. The court acknowledges that the judicial process is public, making this data accessible.

Digitized records can typically be accessed through courthouse terminals and province-specific legal organizations, such as the SOQUIJ (Société québécoise d’information juridique du Québec). 

There are three types of records:

• Statutory court records 

• Criminal court records

• Civil court records

As indicated by their names, the first two concern criminal or statutory legal proceedings. As for civil court records, these include litigations like bankruptcies and small claims lawsuits.

What Information Do You Need to Conduct Thorough Research?

You need basic information to track down the details you’re after, such as the individual’s first and last name and date of birth. Note that inputting their home address is likely to unearth better search results. 

Once the search results pop up, you can scroll through each file detailing the legal actions taken against a particular individual. What’s more, you can also access details regarding:

• types of offences;

• number of charges against the individual in question;

• legal articles cited against each charge; and

• verdict delivered following case closure, provided that a ruling was rendered.

How Much Does It Cost to Access Court Ledgers?

Consulting court ledgers is free of charge if you show up in person, meaning at a terminal inside a Court of Appeal, Court of Justice, Superior Court, Municipal Court, or Human Rights Tribunal Court.

If you prefer to access information online, such as through the SOQUIJ portal, or other legal portals or organizations, you first have to pay user fees, meaning a consultation fee and a $15 monthly fee per access code requested. (Note that said fee solely applies to SOQUIJ, which is available only in Quebec.)

As for the organizations mentioned previously, request information directly from the source to understand the information processing fees charged.

How Are Court Ledgers Restricted?

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Although background checks can be useful to better ascertain a prospective customer, they have certain limitations, which should be understood before resorting to them.

Geographic Boundaries

While court ledgers outline the minutes of penal or criminal court proceedings against a citizen, they make no mention of offences committed outside provincial lines, whether within the country or overseas. Moreover, given that the process of digitizing files was only instated in 1975, later in some districts, accessing all-encompassing information related to offences committed prior to said date is impossible.

Information Accuracy

Judiciary databases aren’t always updated in real-time. Recent rulings may not figure, or an ongoing case may not be a genuine reflection of a given customer. Moreover, a criminal record solely paints a partial picture of an individual’s background. It doesn’t allow for assessing a customer’s commitment, financial stability, or reliability. 

Also, note that individuals who were granted a pardon following their request are given the opportunity to submit a formal petition to their provincial Department of Justice to have their offences expunged from their record.

Along the same lines, data can be deleted on demand if the offending party was granted a peace bond, absolute discharge, acquitted, or released during the preliminary stages of an investigation. 

Lastly, bear in mind that consulting certain files may be prohibited if labelled confidential or under restricted access, albeit the latter rarely applies.

What Legal and Ethical Factors Should You Consider?

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Checking a customer’s criminal record is a serious undertaking. Between respecting someone’s privacy and a strict legal stance, adopting a transparent and ethical approach is paramount. By informing your customer and using the information provided responsibly, you’re thereby reinforcing trust and ensuring a safe business relationship.

Customer Consent

While some criminal record information may be accessed via public databases, such as court ledgers, obtaining the customer’s consent is recommended prior to running a background check. This approach fosters trust and professional transparency between all parties involved. In some cases, a more thorough investigation requiring official documents may warrant the customer’s written authorization. As such, it’s best to communicate openly about the reasons behind this process and how the information will be used thereafter. 

If you keep or use the data provided, you must abide by the related legal obligations, including safe document storage and data destruction following its use.

Information Use

The data issued from running a background check must be used carefully and exclusively within a professional business relationship with the individual in question. Treating the information provided with discretion is paramount, as is never divulging said data to unauthorized third parties. The goal behind this procedure isn’t to judge someone’s past, but rather to ensure doing business with a certain individual presents no risk to your company or project commissioned.

Any decision made based on someone’s criminal background must be justified and directly related to the contract at hand. Objectively evaluating each situation in accordance with the law is essential to preventing unjustified discrimination.

Prioritize Responsible and Ethical Background Checks

Taking a structured and ethical approach to background checks enhances risk management while upholding human rights. By acknowledging the legal system’s limitations and obligations concerning personal data protection, you can ensure a responsible and well-informed process.