What is an Investigative Consumer Report and how does it differ from a credit report? As it turns out, there is quite a substantial difference between an investigative consumer report and a credit report.
Your credit report is a collection of data gathered from your creditors, which summarizes your credit history. When you apply for a credit card - your bank, credit card company, or mortgage lender uses your credit report to evaluate the potential risk of lending money to you. Although, the data can be boiled down to a three digit numerical score, it makes no inference about your general reputation or character. You could be a mean scrooge, but as long as you pay your bills on time, your credit report will be spotless.
An Investigative Consumer Report, on the other hand, is a form of credit report that is more like a detailed background check. In addition to covering your general creditworthiness, it also involves the gathering of information on your character, general reputation, personal characteristics, or way of living. The gathering of that information may even include interviews with your neighbors, friends, and associates about your lifestyle, character, and reputation.
Investigative Consumer Report will not include any information about your credit record obtained directly from a creditor, or from you. It is not used, and cannot be used, as part of an application to grant credit. Normally, the use of investigative consumer reports is limited to certain specific uses, such as employment background checks, or insurance application. If anyone chooses to perform an investigative consumer report on you, you will be notified in writing of such an action. If someone requests an investigative consumer report for employment purposes, federal law requires them to obtain permission from you first.
If, as a result of the investigative consumer report, your application for employment is rejected, the employer must give you a copy of the report. If your application for insurance is rejected, you may contact the credit reporting agency for more information; however, the credit reporting agency does not need to reveal the sources of its information.
Federal law regulating investigative consumer reports is strict, and California's law governing background checks and credit checks differs somewhat from other states. If you interested to learn more about privacy rights there are many credible web sites you can check out..
