What Is Included in a Consumer Report?
Understand the comprehensive data within your consumer report, its uses, and the regulatory framework protecting your privacy.
A consumer report compiles an individual’s personal and financial data, providing a snapshot of their financial behavior and history. These reports are used widely in various transactions, influencing decisions about obtaining credit, securing housing, or even gaining employment. Understanding the contents of these reports is important for consumers, as the information can significantly impact daily life and future opportunities.
The Regulatory Framework of Consumer Reports
The Fair Credit Reporting Act (FCRA), enacted in 1970, is the primary federal law governing consumer reports in the United States. This legislation promotes the accuracy, fairness, and privacy of information collected by consumer reporting agencies (CRAs). The FCRA defines a “consumer report” as a communication from a CRA used for purposes such as credit, insurance, or employment.
Consumer reporting agencies (CRAs) collect and evaluate consumer information to furnish these reports to third parties. These agencies include the three major national credit bureaus—Experian, Equifax, and TransUnion—along with numerous other specialty reporting agencies. The FCRA dictates the types of information that can be legally collected and reported, as well as the permissible purposes for which these reports can be accessed.
Core Information Categories
Consumer reports contain several fundamental types of information that provide an overview of an individual’s financial and personal history. Personal identifying information, such as names, current and previous addresses, Social Security numbers, and dates of birth, helps to accurately identify the consumer.
Credit account information is a substantial part of consumer reports. This includes a history of various credit accounts like credit cards, loans, and mortgages. It specifies payment behavior, indicating whether payments were made on time or if there were late payments, along with account statuses (open or closed), credit limits, outstanding balances, and the dates accounts were opened.
Public records can also be featured on consumer reports. Historically, bankruptcies, tax liens, and civil judgments appeared, with bankruptcies remaining on reports for up to 10 years. While most civil judgments and tax liens are now often excluded from major credit reports, they may still surface on other types of consumer reports or specialized background checks.
Inquiries represent requests made by entities to view a consumer’s report. These are categorized into “hard inquiries” and “soft inquiries”. Hard inquiries, typically occurring when applying for new credit, can impact credit scores, while soft inquiries, such as checking one’s own credit report or pre-screening offers, do not. Adverse actions and collection accounts, which detail accounts sent to collections or charged off due to non-payment, also appear on reports, generally remaining for approximately seven years from the date of initial delinquency.
Specialized Consumer Reports and Their Contents
Specialized consumer reports cater to distinct purposes. Credit reports, furnished by the major credit bureaus like Experian, Equifax, and TransUnion, are the most common type. These reports compile credit account information and translate it into a credit score, such as FICO or VantageScore, which lenders use to assess creditworthiness. These scores are derived from factors like payment history, amounts owed, length of credit history, and new credit.
Employment background checks help employers verify a candidate’s suitability. These reports frequently include criminal records, distinguishing between convictions, which can be reported indefinitely in most states, and arrest records, which typically have reporting limits of seven years. Employment background checks also verify previous employment history, educational credentials, and professional licenses. The scope of these checks can vary based on job requirements and industry regulations.
Tenant screening reports assist landlords in evaluating prospective renters. These reports commonly include eviction history, previous addresses, and a modified credit check that focuses on an applicant’s debt and payment reliability relevant to tenancy. Criminal records pertinent to tenancy may also be included. Other specialized reports exist, such as insurance claim history reports like CLUE reports for auto and home insurance, and check verification services that track check-writing history and overdrafts.
Information Exclusions and Limitations
Specific categories are excluded or limited under the FCRA to protect consumer privacy and ensure fairness. Negative information, such as late payments, accounts in collection, and most civil judgments, has a reporting limit of seven years from the date of the event. Bankruptcies can remain on a report for up to 10 years from the date of the final order.
Protected characteristics are excluded from consumer reports. This includes race, religion, national origin, gender, sexual orientation, political affiliations, or medical history. These exclusions prevent discrimination and safeguard personal privacy.
Medical information is restricted and excluded from consumer reports unless specific conditions are met. It may be included if directly relevant to a debt or insurance claim and only with explicit consumer consent. Medical debts, when reported, must be coded to conceal the name of the healthcare provider and the nature of the services.
Information that is irrelevant or cannot be verified is also excluded from consumer reports. This includes data not directly related to credit, public records, or the permissible purposes defined by the FCRA.