Despite its name, the Fair Credit Reporting Act covers a lot more than simply credit reports. Credit reports are just one of a broader category of consumer reports covered by the FCRA. Consumer reports can also include reports about you made to employers, insurance companies, banks, and landlords. In recent years, many new companies have sprouted, compiling reports specifically targeted at employers, insurers, and landlords. The companies that compile reports for targeted users are “consumer reporting agencies” under the FCRA, just like the three national credit bureaus: Experian, TransUnion, and Equifax.

Companies that compile reports on consumers for other than credit have been designated by Congress as “nationwide specialty consumer reporting agencies.” These agencies compile reports about much more than just your credit history. Here are a few examples of the types of reports that they compile:

• Medical conditions (for example, the Medical Information Bureau (MIB) report)
• Residential or tenant history and evictions (for example, the Unlawful Detainer (UD) Registry)
• Check writing history (for example ChexSystems)
• Employment background checks
• Homeowner and auto insurance claims (for example, CLUE reports)

Hardly a day goes by without hearing about someone becoming a victim of identity theft or learning about another data breach. The exposure of Social Security numbers (SSNs) and other personal information can increase consumers’ susceptibility to identity theft. Privacy Rights Clearinghouse’s “Chronology of Data Breaches” documents over 230 million records that have been compromised since January 2005. www.privacyrights.org/ar/ChronDataBreaches.htm

Faced with these alarming statistics, many consumers have turned to identity theft or credit monitoring services for protection. Identity theft monitoring services may sound like a good way to protect your good credit and your good name. However, many of these services are overpriced and are not worth the money that they cost.