Restrictions on investigative consumer reports 15 USC s 1681l

The Fair Credit Reporting Act (FCRA) specifically addresses certain types of detailed background reports called "investigative consumer reports." This section of the law, known as 15 USC § 1681l, puts restrictions on these reports to protect consumer privacy and ensure fair practices.

An investigative consumer report is not just a basic credit check. It includes more detailed information that may be gathered through personal interviews with friends, neighbors, or associates. These reports might be used by employers, landlords, or lenders when they need to know more about someone’s character, general reputation, personal characteristics, or mode of living.

• Consent Required: Before an investigative consumer report can be compiled, the consumer must be told that such a report may be made. This is generally done in writing and before the report is requested.
• Disclosure of Nature and Scope: If a consumer asks for it within a reasonable time, the company or entity that requested the report must explain what kind of information was sought and how they went about collecting it.
• Limited Use of Medical Information: The report cannot contain information about the consumer’s medical history or conditions unless the consumer explicitly consents.

For example, imagine you're applying for a job, and the employer wants to conduct an in-depth background check. They have to notify you first. If they discover something concerning, and you request more details, they must explain where they got the information and what they found. They're not allowed, however, to dig into your medical records without your clear permission.

The aim of these rules is to balance the needs of businesses to know who they're dealing with while also protecting individual privacy and rights. The FCRA creates guidelines to help ensure that this balance is maintained.