There are two kinds of credit reports; consumer credit reports and investigative consumer reports. Consumer credit reports list credit history, place of employment, social security number, and marital status. This is the most common kind of credit report and it is used primarily by potential creditors. The second kind of credit report, the investigative consumer report, provides much more detailed information. It is usually used by a potential employer or by an insurance company planning to issue a large policy. This kind of report contains detailed personal information such as general reputation and personal habits. Such information is obtained by interviewing previous employers, neighbors, or anyone else willing to share information with the bureau. Equifax is the largest supplier of these investigative reports, which are most often sold to the insurance industry. Although credit bureaus often claim that these reports are more complete and informative than a standard consumer credit report, too often very little in-depth research is actually done, and, according to some reports, "credit analysts" are often encouraged to make inferences and even tell outright lies. Characterizations such as "of questionable character" and "deviant behavior" apparently help to sell the service to companies who are more interested in digging up negative information than in knowing the truth. This kind of character assassination is often so blatant that the Federal Trade Commission has had to take action on many complaints against Equifax. Some examples:
- A Vietnam veteran erroneously reported as dishonorably discharged cannot get the bureau to correct the information.
- A Cleveland man, after several demands, receives a report containing gossip from his neighborhood.
- The fact that a person filed a legitimate complaint with the Occupational Safety and Health Administration is contained in that person's Equifax report.
Equifax, which naturally denies any wrongdoing, continues to sell its investigative report. It also continues to claim that it performs an indepth investigation. A friend of mine recently applied for a job in an insurance company that uses the Equifax service. The sum total of the investigation was a telephone call to his landlord to confirm where he lived and to ask "What kind of a person is he?" Equifax represented this as an in-depth investigation to his employer in presenting his credit report. Investigative reports can be obtained in the same fashion that regular credit reports can, and you would be wise to check yours at least once a year. Your character is a very important asset, and with the growing use of these reports in employment, you ought to keep abreast of what is being said about you. However, since this kind of report is seldom used in connection with obtaining credit, this book will deal primarily with the more-common consumer credit report.
