Alyssa Lane
Investigative consumer reports are less common than credit reports but are broader in content. They contain information on an individual consumer's character, general reputation, personal characteristics, or mode of living. This information is obtained through personal interviews with the consumer's neighbours, friends, associates, or others who may be acquainted with the consumer. Investigative consumer reports are often used by employers to check on job applicants, but they can also be used when applying for things like housing. It's important to note that investigative consumer reports are not the same as credit reports, which focus on an individual's credit history and are used by lenders. Credit reports are regulated by the federal government under the Fair Credit Reporting Act (FCRA), which also provides guidelines for investigative consumer reports.
| Characteristics | Values |
|---|---|
| Definition | Section 1681a of the Fair Credit Reporting Act (FCRA) defines an "investigative consumer report" as "a consumer report or portion thereof in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any such items of information." |
| Requested for | Employment or housing applications |
| Contents and limits | Defined by civil statutes |
| Information sources | Personal interviews with third persons such as neighbors, friends, associates, or others acquainted with the consumer |
| Information type | Information on a consumer's character, general reputation, personal characteristics, or mode of living |
| Information exclusion | Specific factual information on a consumer's credit record |
| Compliance | If the report contains medical information, you must obtain the applicant's permission before the CRA can issue the report. |
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What You'll Learn
- Investigative consumer reports are broader than credit reports
- They contain information on character, reputation, personal characteristics, and mode of living
- They are requested for things like employment or housing
- They are compiled by companies different from credit bureaus
- They are covered by the Fair Credit Reporting Act (FCRA)
Investigative consumer reports are broader than credit reports
Credit reports and investigative consumer reports are both important documents that contain information on individual consumers. However, they differ in terms of content, scope, and who is likely to request and read them. Credit reports are more common and familiar to most people, as they are regularly updated files compiled by credit bureaus based on information supplied by an individual's creditors, such as mortgage companies, auto lenders, and credit card issuers. These reports focus on an individual's financial history and current financial situation, including how much money they owe, their payment history, and their creditworthiness.
Investigative consumer reports, on the other hand, are less common but broader in their content. They provide a more comprehensive view of an individual beyond just their credit history. While credit reports are primarily used by lenders, investigative consumer reports are often used by employers, landlords, and insurance companies. These reports may include information on an individual's character, general reputation, personal characteristics, and mode of living, as well as criminal history, employment history, and medical conditions. They are typically requested when applying for things like employment, housing, or insurance, and the individual's permission is usually required.
The companies that create investigative consumer reports are different from the credit bureaus that compile credit reports, and there are far more of them. Investigative consumer reports are regulated by the Fair Credit Reporting Act (FCRA), which ensures that the information provided is accurate and protects the privacy of the consumer. Individuals have the right to see their investigative consumer reports and can obtain free copies from the reporting companies, just as they can with credit reports.
In summary, investigative consumer reports are broader than credit reports as they cover a wider range of personal information beyond just financial history. They are used for different purposes and by different entities, and while less common, they can play a significant role in an individual's life, especially during screening processes for employment, housing, or insurance.
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They contain information on character, reputation, personal characteristics, and mode of living
Investigative consumer reports are less common than credit reports, but they are broader in their content. They contain information on an individual that is not in their credit report, including their character, general reputation, personal characteristics, and mode of living. They are often used by employers to screen job applicants, but they can also be requested when applying for insurance, housing, or employment.
The Fair Credit Reporting Act (FCRA) defines an investigative consumer report as a type of consumer report that includes information on a consumer's character, general reputation, personal characteristics, or mode of living. This information is obtained through personal interviews with the consumer's neighbours, friends, associates, or others who may be acquainted with the consumer or who have knowledge of such items. According to the FTC, personal interviews can be conducted by mail, telephone, or electronic means, as well as in person.
It is important to note that if the report contains only information obtained from the individual themselves, it is not considered an investigative consumer report. The FTC clarifies that obtaining information beyond "fact-checking" from a former employer could constitute an interview and be considered for an investigative consumer report.
The contents and limits of investigative consumer reports are defined by civil statutes, and individuals have the right to request and review their reports, just as they do with credit reports. Investigative consumer reports play an important role in various aspects of people's lives, from employment to insurance applications.
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They are requested for things like employment or housing
Investigative consumer reports are often requested for things like employment or housing. These reports contain information on an individual that is not included in a credit report, such as their character, general reputation, personal characteristics, and mode of living. They are most commonly used by employers to screen job applicants, but landlords may also request them when evaluating potential tenants.
The Fair Credit Reporting Act (FCRA) regulates both credit reports and investigative consumer reports. The FCRA ensures that the information provided by consumer reporting agencies (CRAs) is accurate and protects the privacy of the consumer. To comply with the FCRA, entities must have a permissible purpose for obtaining an investigative consumer report and must take specific steps if they take adverse action based on the information in the report. For example, if an insurance company denies coverage or increases rates based on information in a consumer report, they must provide a notice to the consumer under Section 615(a) of the FCRA.
It's important to note that investigative consumer reports are distinct from credit reports in terms of content and purpose. Credit reports focus on an individual's credit history and are primarily used by lenders. Investigative consumer reports, on the other hand, provide a broader scope of information and are used to assess candidates for employment, housing, or insurance purposes.
When it comes to employment, employers must provide specific disclosures to candidates when obtaining investigative consumer reports. These disclosures include information about the report, such as the fact that it may contain information obtained from personal interviews with the candidate's neighbours, friends, or associates. Candidates have the right to request additional disclosures and a written summary of their rights under the FCRA.
In summary, investigative consumer reports are an essential tool used by employers, landlords, and insurance companies to make informed decisions about individuals' character, reputation, and personal characteristics. These reports are subject to strict regulations under the FCRA to protect consumer privacy and ensure accuracy.
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They are compiled by companies different from credit bureaus
Credit reports and investigative consumer reports are compiled by different companies and serve different purposes. Credit reports are compiled by credit bureaus and are regulated by the federal government under the Fair Credit Reporting Act (FCRA). They contain information about an individual's credit history and are commonly used by lenders.
On the other hand, investigative consumer reports are compiled by companies that are not credit bureaus. These companies are often referred to as consumer reporting agencies (CRAs) or investigative consumer report agencies. They provide information that is not typically found in a credit report, such as an individual's character, general reputation, personal characteristics, and mode of living. This information is obtained through personal interviews with the subject's neighbours, friends, associates, or other acquaintances.
The companies that create investigative consumer reports are numerous and, while Experian and TransUnion have divisions for this purpose, they are distinct from the credit bureaus. These companies play an important role, especially for employers who want to conduct background checks on job applicants, as well as for insurance companies, landlords, and other entities that may require more comprehensive information about an individual.
It is worth noting that investigative consumer reports are less common than credit reports, but they are broader in their content. They may include information about a person's medical conditions, driving record, criminal activity, and participation in dangerous sports. Due to the sensitive nature of the information, the FCRA provides guidelines and protections to ensure the privacy and accuracy of the data in these reports.
In summary, investigative consumer reports are compiled by companies that differ from credit bureaus, and they serve a unique purpose by providing a broader range of information obtained through personal interviews with individuals associated with the subject of the report.
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They are covered by the Fair Credit Reporting Act (FCRA)
Investigative consumer reports are covered by the Fair Credit Reporting Act (FCRA). The FCRA is a federal law that was first passed in 1970 and has since been amended several times. The purpose of the FCRA is to ensure that consumer reporting agencies (CRAs) handle consumer information in a fair and equitable manner, maintaining confidentiality, accuracy, relevancy, and proper utilization.
The FCRA governs access to consumer credit report records and promotes the accuracy, fairness, and privacy of personal information assembled by CRAs. CRAs are entities that compile and sell credit information and financial information about individuals. The FCRA defines an investigative consumer report as a report that includes information on a consumer's character, general reputation, personal characteristics, or mode of living. This information is typically obtained through personal interviews with the consumer's neighbours, friends, or associates.
The FCRA provides specific protections for consumers in the context of investigative consumer reports. For example, companies that provide information to CRAs have a legal obligation to investigate disputed information. Additionally, users of investigative consumer reports for credit, insurance, or employment purposes must notify the consumer when an adverse action is taken based on the report. This notification must include the name, address, and telephone number of the CRA that supplied the report, as well as a statement that the CRA did not make the decision to take the adverse action.
The FCRA also outlines the responsibilities of those who report information to a CRA. This includes furnishing accurate and complete information and investigating consumer disputes about the accuracy of the information provided. Non-compliance with the FCRA can result in legal consequences, including lawsuits and penalties. Overall, the FCRA helps to protect consumers' privacy and ensure the accuracy and fair use of their personal information in investigative consumer reports.
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Frequently asked questions
An investigative consumer report is a type of consumer report that includes information on a consumer's character, personal characteristics, or mode of living, obtained through personal interviews with people who know them.
Credit reports are far more common and focus on an individual's credit history. Investigative consumer reports are broader and include information that is not in a credit report.
Employers often request investigative consumer reports when checking on job applicants. They may also be requested when applying for housing.
An investigative consumer report may include information on a person's character, general reputation, personal characteristics, or mode of living. This could include medical conditions, driving records, criminal activity, and participation in dangerous sports.
Yes, investigative consumer reports are governed by the Fair Credit Reporting Act (FCRA), which is designed to protect the privacy of consumer information and ensure accuracy.
