I am for extremely limited background checks in any employment scenario. You should be judged on your ability to perform the duties required by the position, not on your ability to pay your bills on time.
Also worth noting;
I was called recently by the largest hospital in my area. They found my resume' in their system. They had a position that paid less than what I make now, and was beneath my skill level. The HR lady asked if I had a Bachelor's degree. When I told her no, she immediately acted as though I would not be competent enough to handle the position. Little did she know what I currently do, and how much I make, let alone that I previously worked at one of the most well known data-centers in the world. This particular position she called me about has been coming available every year for the past 5 years. Moral of the story? Human Resources is probably the worst thing to happen to the economy since the Great Depression.