In detail
The term consumer report is defined by the federal Fair Credit Reporting Act. It covers a broad range of information beyond just credit history. A consumer report can include data about a person's credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. It is prepared by a consumer reporting agency and is used or expected to be used as a factor in establishing eligibility for credit, insurance, employment, or other permissible purposes. Consumer reports are not limited to credit information; they may contain rental history, employment verification, criminal records where legally permitted, and other details. A credit report is a specific type of consumer report that focuses on credit accounts, payment history, and public records like bankruptcies. However, the FCRA's definition of consumer report is broader. For instance, a tenant screening report or an employment background check can also be a consumer report. The FCRA grants consumers rights regarding these reports, including the right to know what is in their file, to dispute inaccurate information, and to receive a copy of their report under certain circumstances. The law also limits who may obtain a consumer report and for what purposes. Consumer reporting agencies that assemble consumer reports must follow FCRA requirements. They may not furnish reports for impermissible purposes. Consumers can request their file disclosure from nationwide credit reporting companies. State laws such as the California Consumer Privacy Act may add further obligations. Understanding the distinction between a consumer report and a credit report helps clarify legal rights and the scope of information that can be shared.