Background Check Disclosure

Effective Date: November 22, 2025

Company: LoopHood, Inc.

⚠️ BACKGROUND CHECKS HAVE SERIOUS LIMITATIONS

Background checks are NOT a guarantee of safety or trustworthiness. They may be incomplete, inaccurate, or outdated. Always conduct your own thorough due diligence.

A "Verified" badge does NOT mean LoopHood endorses or guarantees the user.

1. INTRODUCTION

This Background Check Disclosure explains how background checks work on LoopHood, what they include, their limitations, and your rights under the Fair Credit Reporting Act (FCRA).

Key Points:

• Background checks are provided by Checkr, NOT LoopHood
• Background checks are optional and user-funded
• You pay Checkr directly ($25-$35)
• LoopHood receives only a pass/fail result
• Background checks have significant limitations

2. WHAT IS INCLUDED IN BACKGROUND CHECKS

2.1 Standard Background Check Components

Checkr's background checks typically include:

Criminal Records Search: County, state, and federal criminal records
Sex Offender Registry: National sex offender database search
SSN Verification: Validates identity and detects fraud
Address History: Confirms residential addresses

2.2 What Background Checks Do NOT Include

Background checks do NOT verify:

• Skills, experience, or qualifications
• Professional licenses or certifications
• Employment history
• Education credentials
• References or character
• Financial responsibility or credit history
• Immigration or citizenship status

Biometric Information Disclosure

If our background check partner (Checkr) requests a selfie or facial scan for identity verification, you understand this is collected directly by Checkr under their own Privacy Policy. LoopHood does not collect or store your biometric data.

3. COST & PAYMENT

Cost: Packages range from $47 to $119 depending on the depth of the check (LoopHood Verified, LoopHood Trusted, or LoopHood Guardian).

Payment: Fees are paid directly through the LoopHood platform at the time of request.

Service Fees: The total cost includes Checkr verification fees and LoopHood service fees to cover platform safety operations.

Frequency: Background checks are valid for 12 months; after 12 months, a new check may be required to maintain "Verified" status.

4. CRITICAL LIMITATIONS OF BACKGROUND CHECKS

⚠️ IMPORTANT: READ CAREFULLY

Background checks have significant limitations and should NOT be relied upon as the sole basis for trusting another user.

1. May Be Incomplete

Background checks may not include all jurisdictions. If someone committed a crime in a county or state not searched, it will not appear.

2. May Be Inaccurate

Databases contain errors. Names may be misspelled, records misattributed, or information outdated.

3. Not Real-Time

Background checks reflect data at the time of the check. Recent arrests or convictions (within weeks or months) may not appear.

4. Jurisdictional Gaps

Some jurisdictions do not participate in national databases. Activity in those areas will be missed.

5. No Character Assessment

A clean background check does NOT mean someone is trustworthy, competent, or safe to work with.

6. Not a Guarantee

Passing a background check is NOT a guarantee of safety. Many harmful individuals have no criminal record.

5. LOOPHOOD'S LIMITED ROLE

5.1 What LoopHood Does

Provides access to Checkr's background check services
Receives only a "pass" or "fail" result from Checkr
Displays a "Verified" badge on profiles that pass
Does NOT receive detailed criminal records or reports

5.2 What LoopHood Does NOT Do

Conduct background checks (Checkr does this)
Verify accuracy of background check results
Guarantee the safety or trustworthiness of "Verified" users
Review or interpret criminal records
Make hiring or engagement recommendations

LoopHood makes NO warranties about the accuracy, completeness, or reliability of background check results.

6. WHAT THE "VERIFIED" BADGE MEANS

✓ Verified Badge Indicates:

• User paid for and passed a background check through Checkr
• No disqualifying criminal records were found at the time of the check
• SSN was validated

⚠️ Verified Badge Does NOT Mean:

• User is trustworthy, safe, or qualified
• User has no criminal history (may be incomplete)
• User's skills or experience are verified
• LoopHood endorses or recommends the user
• User will perform services competently
• User is insured or licensed

The "Verified" badge is informational only. Always conduct your own thorough due diligence.

7. YOUR RIGHTS UNDER THE FAIR CREDIT REPORTING ACT (FCRA)

7.1 Consumer Rights

Background checks are regulated by the Fair Credit Reporting Act (FCRA), a federal law that protects consumers. Under the FCRA, you have the right to:

Dispute Inaccurate Information: If your background check contains errors, you can dispute them directly with Checkr
Request a Copy: You can request a copy of your background check report from Checkr
Adverse Action Notice: If someone takes adverse action against you based on your background check (e.g., refuses to engage you), they must notify you and provide information about the report
Correct Errors: If inaccurate information is found, Checkr must investigate and correct it

7.2 How to Exercise Your Rights

To dispute inaccurate information or request a copy of your report, contact Checkr directly:

Checkr Contact Information:

Email: support@checkr.com

Phone: 1-844-824-3257

Website:checkr.com

8. YOUR RESPONSIBILITIES

Background checks are NOT a substitute for your own due diligence. You are responsible for:

Checking References: Contact at least 3 previous clients or employers
Conducting Interviews: Meet in person or via video call before engaging
Verifying Credentials: Confirm licenses, certifications, and experience claims
Reviewing Ratings: Check user's reputation score and reviews
Starting Small: Begin with small, low-risk transactions before committing to larger ones
Trusting Your Instincts: If something feels wrong, don't proceed
Verifying Insurance: Confirm service providers have appropriate insurance
Documenting Everything: Keep written records of agreements and communications

YOU assume all risks when engaging with other users, regardless of background check results.

9. QUESTIONS ABOUT YOUR BACKGROUND CHECK

For questions about your background check results, to dispute inaccurate information, or to request a copy of your report, contact Checkr directly:

Checkr, Inc.

Email: support@checkr.com

Phone: 1-844-824-3257

Website:checkr.com

Address: 1 Montgomery Street, Suite 2400, San Francisco, CA 94104

LoopHood cannot modify, dispute, or provide details about your background check results. All inquiries must go directly to Checkr.

COMPREHENSIVE LIABILITY DISCLAIMER

LOOPHOOD DOES NOT CONDUCT BACKGROUND CHECKS AND IS NOT RESPONSIBLE FOR THE ACCURACY, COMPLETENESS, OR RELIABILITY OF BACKGROUND CHECK RESULTS PROVIDED BY CHECKR. LOOPHOOD MAKES NO WARRANTIES, EXPRESS OR IMPLIED, ABOUT THE SAFETY, TRUSTWORTHINESS, OR QUALIFICATIONS OF ANY USER, REGARDLESS OF BACKGROUND CHECK STATUS. YOU ASSUME ALL RISKS WHEN ENGAGING WITH OTHER USERS. LOOPHOOD SHALL NOT BE LIABLE FOR ANY INJURY, LOSS, DAMAGE, OR HARM ARISING FROM YOUR RELIANCE ON BACKGROUND CHECK RESULTS OR "VERIFIED" BADGES.

Questions About This Policy?

LoopHood, Inc.

Email: legal@loophood.app

Address: 611 DuPont Highway Suite 102, Dover, DE 19901

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