How does an investigative consumer report differ from a credit report?
Some credit reporting agencies and investigation companies compile what is known as "investigative consumer reports." Such reports are defined under the FCRA 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..
An investigative consumer report is normally used in limited circumstances including employment background checks, insurance, and rental housing decisions. An investigative consumer report does not contain information about your credit record that is obtained directly from a creditor or from you. For example, an investigative consumer report should not contain information about a late payment. This type of report cannot be used to grant credit. Because the information in these reports is so detailed and may be sensitive, FCRA imposes stricter regulations on CRAs that compile investigative reports (FCRA, 15 USC 1681d sections 604, 606, and 614).
California 's law that governs background checks is somewhat different from the federal FCRA. For more information, see www.privacyrights.org/fs/fs16a-califbck.htm. California has a separate law that governs credit checks. (CA Civil Code
