Credit Reports, Consumer Reports, Investigative Reports
Information about people living in America sits in a variety of databases. All of us know about the credit report prepared by the credit bureaus. This report mainly contains information about debts – current and past – and whether they were paid on time.
A consumer report contains more than a credit report: data on criminal history, driving, employment and education, as well as public information. Here is the data contained in a consumer report: current and previous addresses, marital status, Social Security number; current and previous employers; Workers’ Compensation claims; medical and military records; assets, criminal history, education, and professional or state licenses.
An investigative consumer report goes even further. It may contain very personal details, such as your reputation or character. The investigative agency obtains this data by talking to neighbors, friends, coworkers, etc. Investigative reports are ordered by insurance companies or very nosy employers.
For drivers, the contents of their driving record also matter. You can get access to it at your state’s Department of Motor Vehicles (DMV); in New York State: dmv.ny.gov. In addition, there are specialty databases that record your history of writing checks, insurance claims and behavior as a tenant. Employment, criminal and medical history, etc., are also recorded. A list of companies that run such databases is published by the Consumer Financial Protection Bureau (CFPB): www.consumerfinance.gov.
Only When There Is a Reason
Any institution that requests access to your credit or consumer report must show a valid reason, such as your application for credit, housing or a job; a planned promotion, transfer or retention at work; an application for an insurance policy; or an application for public assistance. In practice, anyone who shows a legitimate business need for information about you – for example, a landlord considering renting you an apartment – can obtain your consumer report.
Note: An employer can check your consumer file only with your written consent. Signing an application (for credit, a job, a lease, etc.) that contains the appropriate clause usually amounts to giving consent.
How Your Rights Are Protected
The Fair Credit Reporting Act (FCRA) protects your privacy. It prohibits the following information from being included in a report:
- negative information older than 7 years, such as accounts in collection, judgments, arrest records and tax liens,
- a bankruptcy older than 10 years.
In New York State, state law also prohibits reporting information about an arrest or criminal charges that did not end in a conviction, unless the case is still pending.
The FCRA gives you a number of rights. In a nutshell: the right to see your file and to have inaccurate, incomplete or outdated information corrected. It limits third parties’ access to your file and gives you additional rights if you have become a victim of identity theft.
If your application is denied because of the contents of a consumer report (an “adverse action”), the Fair Credit Reporting Act requires that you receive a notice called an “adverse action notice,” containing the name, address and phone number of the agency that supplied the report, so that you can dispute inaccurate information.
Check Yourself
Before you start applying for a job or credit, you can check up on yourself. You have the right to know what is in your file at a credit reporting agency and to file a dispute if the file contains incomplete or incorrect information. You request your consumer report from the credit bureau, providing your personal information, including your Social Security number. The law guarantees you a free copy of your file from each of the three credit bureaus (Equifax, TransUnion and Experian) once every 12 months, and the bureaus now permanently offer free reports as often as once a week. The easiest way to get a free report is online at www.annualcreditreport.com or by phone at 1-877-322-8228.
If you have been arrested or convicted by a court, make sure that every case in your criminal record shows the correct disposition. If it does not, contact the court clerk or the police precinct in the place where the incident occurred. Your criminal record may be sealed, which means it is not available to the public unless you commit another crime, or expunged, which means erased as if it had never existed. You will need an experienced attorney to arrange this. More in the book “Życie od nowa. Jak uporządkować problemy w urzędach” (“Life Anew: How to Sort Out Problems with Government Offices”).
Conclusion
Tell the truth on job, credit or rental applications, because this information can be verified. In particular, a prospective employer with whom you are applying for a position of responsibility may check your full consumer file, which includes credit, criminal, educational and other information. Some positions require a security clearance – permission to access classified documents or information – which in turn requires a particularly thorough check of your background.
Finally: Behave responsibly. Although America is considered a free country, records of irresponsible behavior stay with you for many years.
Updated October 2026.
