Fact Sheet 6(b): Specialty Reports

Copyright © 2004-2007.
Privacy Rights Clearinghouse / UCAN
Posted December 2004.
Updated November 2005.





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The “Other” Consumer Reports:
What You Should Know about “Specialty” Reports

1. Introduction.
2. Specialty Consumer Reports – the Players
3. Free Reports Available December 1, 2004
4. Insurance Claims Reports
5. Medical History Reports
6. Residential and Tenant Reports
7. Check Writing History Reports
8. Employment Reports
9. When to Order a Specialty Report
10. References

1. Introduction

Will you be a good employee?
Are you likely to wreck your car?
Is your checking account frequently overdrawn?
Are you in poor health?
Will you default on your mortgage?
Does your home have water damage?
Will you trash the apartment or vacate with rent unpaid?

These are the unspoken questions asked by employers, landlords, creditors, insurers and banks as you – the consumer – make your way through the normal affairs of adult life. To the company that may give you a job, write an insurance policy, or rent you an apartment, you represent a risk – the unknown – and companies feel a need to assess their “risk” in dealing with you. Of course, you won’t be asked these questions outright, but those who want to rate your “risk level” are turning more than ever to specialized “consumer reports” to find out more about you.

The federal Fair Credit Reporting Act (FCRA) covers reports about your overall financial health. Credit reports allow a lender to see whether you pay your bills on time, have filed for bankruptcy, have an outstanding judgment or collection action against you.

However, 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.

To learn more about your credit reporting rights, see PRC Fact Sheet 6, How Private Is My Credit Report?, www.privacyrights.org/fs/fs6-crdt.htm.

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 credit 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 your:

The “specialty” subcategory of consumer reporting agencies was specifically identified in recent amendments to the FCRA made by the Fair and Accurate Credit Transaction Act (FACTA). (FCRA sec. 612 (a)(1)(C))

To learn more about FACTA and the latest amendments to the FCRA, see PRC Fact Sheet 6a, FACTA, the Fair and Accurate Credit Transactions Act: Consumers Win Some, Lose Some, www.privacyrights.org/fs/fs6a-facta.htm.

FACTA gives consumers the right to a free credit report each year from the three national credit bureaus: Experian, TransUnion and Equifax. FACTA also gives consumers the right to a free report from a “specialty” consumer reporting agency once a year.

2. Specialty Consumer Reports – the Players

What information goes into a “specialty” report?

Specialty consumer reporting agencies operate much like the credit bureaus. The agencies collect information about you from a variety of sources, including:

  • Public records of criminal or civil cases.
  • Your credit history.
  • Bankruptcy filings.
  • Companies with which you have an existing or prior business relationship, such as insurance companies or banks.
  • Your medical information.
  • Driving records.

From this information, the specialty reporting agency compiles reports based on the requirements of targeted users like insurance companies, employers, and landlords.

How do I know if there’s a specialty report on me?

Unfortunately, most consumers are in the dark about the very existence of specialty consumer reports. Usually people learn about specialty reports only after having been denied a job, insurance, or an apartment rental.

What’s involved in making a specialty report?

Like credit reports, the FCRA imposes certain obligations on the specialty reporting companies, users of such reports, and those that furnish information that goes into compiling the reports. The FCRA also gives you, the subject of the report, certain rights.

In addition, just like the credit bureaus, specialty reporting agencies do not make decisions about whether to rent you an apartment, give you a job, or write an insurance policy. Those decisions are left up to the landlord, employer or insurance company.

Following is a brief summary of how the FCRA treats each of the “players” involved:

  • Furnishers, that is, those that feed information to a consumer reporting agency, have an obligation to furnish only accurate information. This holds true whether the furnisher provides information to a credit bureau, tenant screening agency, medical information service, or other entities that meet the definition of “consumer reporting agency.”

Providers of information also have an obligation to update and correct inaccurate information. For more on the obligations of furnishers under the FCRA, see the FTC publication, What Information Providers Need to Know, www.ftc.gov/bcp/conline/pubs/buspubs/infopro.htm.

  • Users of specialty consumer reports include landlords, insurers, and employers. Just like a lender who turns down your loan application, users of specialty consumer reports must give you what’s called an “adverse action notice” along with a copy of your report. So, if you’ve been turned down for an apartment rental based on a report, or if you are denied an insurance policy due to information on a report, you are entitled to a copy of that report. For more on the obligations of these users, see these FTC publications:

  • Nationwide Specialty Consumer Reporting Agencies, like the credit bureaus, have certain obligations when making reports about you. For example, reports can only be issued for purposes allowed by the FCRA. There are time limits on how long negative information can be reported. When you dispute information, the reporting agency has an obligation to investigate and correct any inaccurate or outdated information. A reporting agency that compiles public record information for employment purposes has an additional obligation under the FCRA when that information is likely to have an adverse effect on your ability to get a job.
  • You have the right to a free copy of your consumer report when an adverse action is taken against you based on something in the report. An adverse action would be if you are turned down for employment, are denied insurance or are charged a higher premium, are denied a rental, or are not permitted to open a checking account based on some negative information in your check writing history report. You have the right to dispute inaccurate information in any consumer report prepared about you.

In addition to the free report you are entitled to get if you are turned down for employment, a rental, insurance, or a checking account, you can order a free copy of your specialty report directly from the nationwide specialty consumer reporting agency. As of December 1, 2004, you are entitled to one free report from any specialty agency once a year. This right is not triggered by any adverse action.

3. Free Reports Available December 1, 2004

Recent amendments to the FCRA made by FACTA give you the right to one free report a year from each of the three national credit bureaus: Experian, TransUnion, and Equifax. Access to free credit reports is subject to a nationwide phase-in, which began December 1, 2004, for Western states. For more on your right to free credit reports, see:

When can I get my specialty report?

December 1, 2004, also marked the starting date for free specialty consumer reports. There are some important distinctions between access to the special reports and access to free credit reports:

  • Free specialty reports are not subject to the national phase-in. Free specialty reports are available nationwide December 1, 2004.
  • There is no centralized source for obtaining free specialty reports. Requests must be made directly to each specialty reporting agency.

Unfortunately, FTC regulations do not require nationwide specialty consumer reporting agencies to establish a web site or allow mail-in requests. The only requirement is that specialty agencies establish a toll-free number, published anywhere the company does business. Requests processed otherwise such as through a web site or by mail are optional, although many nationwide specialty agencies have posted information on web sites.

Specialty reporting agencies also:

  • May collect only as much information as necessary to identity you, generally the same information necessary for a free credit report (name, address, Social Security number).
  • May delay processing your request if there’s a high request volume, as defined by the FTC, between December 1, 2004 and February 28, 2005.
  • Must give you, if you ask, an update on the status of your request. However, there is no time limit on when your request must be processed.
  • Must provide a “help” or “frequently asked questions” screen if requests are processed online.

The FTC’s web site gives further information about your rights to get free credit and specialty reports, www.ftc.gov/os/2004/06/040624factafreeannualfrn.pdf.

The following sections of this guide include information we have gathered to date about access to specialty consumer reports. For some specialty reports, one or two companies dominate the market. This means it will be easier for you to find out where to direct your request.

For other areas, such as employment and rental history, specialty reports may be prepared by many different companies. One company, ChoicePoint, prepares and maintains information on consumers for insurance claims, employment, and tenant history, www.choicetrust.com. The company has information on its web site about how to obtain all three types of free specialty reports. See sections 4 through 8 below for details. We will update this guide as more information becomes available.

Will I get the same information the insurer or landlord gets?

Although this guide and other publications generally refer to free “reports,” the FCRA technically gives you the right to a free “file disclosure.” There is a difference under the FCRA between your “report” and your “file.”

Under the FCRA, a “consumer report” is:

…any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living ….(FCRA §609(d)(1))

Your “file” is:

…all of the information on [you] recorded and retained by a consumer reporting agency regardless of how the information is stored. (FCRA §609(g))

In other words, the report is the document provided to the employer, landlord, insurer or creditor. The report reflects information collected and compiled at any given time. Your “file” on the other hand is the information the consumer reporting agency maintains about you. Your right to a free disclosure is to your “file,” not your “report.”

4. Insurance Claims Reports

Specialty reports that tell insurers about claims you have made against your homeowner’s or automobile insurance polices are prepared by two companies: ChoicePoint and ISO Insurance Services. For more on insurance claims reports, see PRC Fact Sheet 26, CLUE and You: How Insurers Size You Up, www.privacyrights.org/fs/fs26-CLUE.htm.

For information on how to order your free A-Plus Report from ISO, see www.iso.com/products/2500/prod2562.html or call (800) 627-3487.

To order your automobile or homeowner’s CLUE report, call ChoicePoint’s toll-free number, (866) 312-8076, or visit the company’s web site at www.choicetrust.com (click on “CLUE Reports).

5. Medical History Reports

The Medical Information Bureau (MIB) is a nationwide specialty consumer reporting agency that compiles and maintains records concerning individual life, health, long-term care, and disability insurance. Generally, you will have an MIB file only if you have applied for one of these insurance products within the last seven years, and only if you’ve applied as an individual rather than as a member of a group.

If you have no significant medical condition and have not applied for insurance as an individual, you are not likely to have an MIB report. The report includes information that you have reported on an insurance application or that the insurance company has obtained from your healthcare provider indicating a medical condition that insurance companies consider significant. In all, MIB assigns from among 230 codes that indicate medical conditions such as asthma, diabetes, high blood pressure, depression, and so on. The MIB estimates that about 20% of individuals have an MIB report. (www.mib.com)

MIB’s toll-free number for disclosure is (866) 692-6901 (TTY (866) 346-3642 for hearing impaired) For more on free reports from MIB, see the company’s web site, www.mib.com/html/request_your_record.html.

For more about medical information and your privacy, see PRC Fact Sheet 8, How Private Is My Medical Information?, www.privacyrights.org/fs/fs8-med.htm, and PRC Fact Sheet 8a, HIPAA Basics: Medical Privacy in the Electronic Age, www.privacyrights.org/fs/fs8a-hipaa.htm.

6. Residential and Tenant Reports

A number of companies prepare reports for landlords concerning individuals who have applied to rent housing. But it appears that few consider themselves to be specialty consumer reporting agencies. With the exception of ChoicePoint, discussed below, we were not able to find tenant screening companies that offer consumers the ability to obtain free reports. We will update information about tenant screening companies in this guide as it becomes available to us.

Because there are many companies involved in tenant screening, we suggest you ask the potential landlord for the name of the screening company he or she uses. This will save you time and effort if you later want to get your free specialty tenant report.

ChoicePoint has information on its web site about how to get a free copy of your tenant report. Call toll-free (877) 448-5732 or visit ChoicePoint’s web site for more information, www.choicetrust.com (click on “Tenant History Report”).

Other agencies that provide tenant screening are Safe Rent (www.saferent.com, toll-free for consumers (888) 333-2413) and UD Registry (www.udregistry.com). As of this writing, UD Registry does not have a toll-free number posted for consumers. The number provided on its web site is (818) 785-3905. Neither Safe Rent nor UD Registry has information on their web sites about how to get a free specialty report.

Consumers may have a particularly difficult time exercising their right to a free specialty report when the “specialty” market is saturated with agencies. This may prove to be the case for tenants who want to check their file. If you learn you will be subject to a tenant screen, you may save yourself a lot of time and trouble by simply asking the landlord the name and contact information for the screening company.

7. Check Writing History Reports

There are three major specialty companies that report on check writing history.

  • ChexSystems is a nationwide specialty consumer reporting agency that collects and maintains information from member financial institutions such as banks and credit unions. If a bank closes your checking account because of insufficient funds, for example, it will make a report to ChexSystems that other banks will check when you apply for new accounts.
  • Toll-free number: (800) 428-9623
  • Web: www.consumerdebit.com/consumerinfo/us/en/chexsystems/report/index.htm
  • TeleCheck also maintains a database of returned checks and instances of fraud. It provides check authorization and verification to member retailers.
  • Toll-free number: (800) 835-3243.
  • Web: www.telecheck.com. As of this writing, TeleCheck does not have information on its web site, other than reference to a toll-free number for FCRA disclosures, listed above.

8. Employment Reports

Obtaining a free copy of your employment report may be a frustrating exercise – unless you know the name the company that performs the background screening. Employees and job applicants do have some additional rights under the FCRA regarding access to background check reports. For example, the employer must give you notice that a background screening may be conducted, and the employer must get your permission. Notice and permission must be given on a separate document, not buried in an application or another form.

Unfortunately, under the FCRA an employer need not tell you the name of the company that will screen you. This appears to us to be a significant loophole in the law. Under California law, on the other hand, an employer must give you this information up front, when you are given the notice and permission documents to sign.(CA Civil Code §1786.12(2)(B)(iv)) In addition, California laws allows you to get a copy your report for two years. (CA Civil Code 1786.11))

For more on employment background checks in California, see PRC Fact Sheet 16a, Employment Background Checks in California: New Focus on Accuracy, www.privacyrights.org/fs/fs16a-califbck.htm.

The national standard, set by the FCRA, does not require an employer to tell you the name of the screening company or tell you how to get a copy of your report. The employer need only give you a copy of the report if he or she decides not to hire you or denies you a promotion if you are a current employee. But it’s important that you keep in mind -- your right to a free employment report does not hinge on the employer’s action.

To say you have the right to a free specialty employment report means little if you don’t know where to look. That’s because hundreds of companies are now engaged in employment background screening. The National Association of Professional Background Screeners lists over 300 member background check companies. www.napbs.com

If you are given notice by an employer that a background check will be conducted, we strongly suggest you ask for the name of the screening company at that time. Even when you know the name of the screening company, this may be a “hollow” right. You can only get free disclosure if the company maintains a file on you. Some employment screeners may simply evaluate you and then issue a one-time report without maintaining a file. For this reason, we suggest you make your request for a free disclosure to the screening agency soon after you get notice that a report may be prepared.

To date, the only employment screening company we’re aware of that offers free reports is ChoicePoint. If you know you were the subject of an employment background check conducted by ChoicePoint, you can get your free file disclosure by contacting the company at:

  • Toll-free number: (866) 312-8075
  • Web: www.choicetrust.com (click on “Employment History Report”)

9. When to Order a Specialty Report

Should I contact every company that offers a free “specialty” report?

Even though it’s free, there is probably no need to expend the time and effort to get every report available to you. There are, however, certain times when you should take advantage of this new right.

1. If you are shopping for new homeowner’s or automobile insurance, order a copy of your CLUE or A-Plus claims report. And if you have filed claims on existing policies, it’s a good idea to check the report to make sure the information is accurate. Sometimes, simply calling an insurance agent with a question can result in a “black mark” to your CLUE or A-Plus report. You will want to make sure that such inquiries are removed.

2. If someone has fraudulently cashed checks against your account or you have for some reason had problems with your checking or savings account, order your ChexSystems report.

3. If a potential or existing employer asks your permission to run a background check, ask for the name of the screening company. Contact the company as soon as the report has been issued because screening companies may not maintain permanent files.

4. If you have been a victim of identity theft, we recommend you order all available reports. Remember, insurers, landlords, employers, and banks have permissible purposes for accessing your credit report. Information in your specialty report may overlap information in your credit report. It is important to correct inaccuracies no matter where they appear.

5. If you want to rent an apartment or home, ask the landlord for the name of the tenant screening company he or she uses, if any. There are many companies involved in this market and you will need to know where to look to exercise your right to a free report.

6. If you are applying for private health, life, long-term care, or disability insurance, order your MIB report from the Medical Information Bureau. If your MIB report contains erroneous or outdated information, you will want to make sure it is corrected before you apply for insurance.

10. References

Laws and Regulations

Federal Trade Commission Publications

Privacy Rights Clearinghouse Publications

 

  
 

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