Most consumers are familiar with the big three consumer reporting agencies (“CRA”), Equifax, TransUnion, and Experian. While those three agencies dominate the market for credit reporting, there are a number of other, more specialized consumer reporting agencies that focus on particular types of background or financial reporting. The Consumer Financial Protection Bureau has released a list of these specialty CRAs. http://files.consumerfinance.gov/f/201604_cfpb_list-of-consumer-reporting-companies.pdf
It is important to keep in mind that these CRAs are subject to most of the same accuracy and disclosure requirements under the Fair Credit Reporting Act as the Big Three. If you are having an issue with any of these agencies, lawyers at Berger Montague have assisted thousands of consumers who have had issues with specialty CRAs. Further, most of these CRAs will provide a free copy of their file upon request.
Pre-employment Background Check Companies
Criminal background check companies are the biggest group of specialty CRAs. These companies specialize in pre-employment background checks and will report criminal records and other public records, employment history, reference checks, and other items. Sometimes these CRAs will also include credit report information from the Big Three. Large pre-employment background screeners include First Advantage, Sterling, HireRight, CheckR, General Information Services, Inc. and IntelliCorp. There are hundreds, if not thousands, of background screening companies so it is very difficult to ensure that your background check is accurate in advance of the report being prepared.
These criminal background checks are frequently inaccurate and erroneous reporting can have devastating consequences for people looking for work.
Tenant Screening Companies
These CRAs specialize in providing reports to landlords on potential tenants. These reports can include rental history records, eviction records, and criminal records. Often, a credit report from one of the Big Three will also be included in the report. Some of the bigger tenant screening agencies include CoreLogic Rental Property Solutions (formerly known as CoreLogic SafeRent), TransUnion Rental Screening Solutions, and Real Page. Inaccurate tenant screening reports can result in the denial of housing.
Check and Bank Screeners
These companies specialize in gathering information related to check writing history and bank account activity. For example, if a consumer is paying by check at a department store, the store may run a report through one of these companies to determine whether to accept the consumer’s check These companies include ChexSystems, Certegy Check Services, Early Warning Services, and TeleCheck Services.
Payday and Subprime Lending
These companies specialize in reports for payday and sub-prime, high interest lenders. Reports will include information on prior payday or sub-prime loans and may include a credit report from one of the Big Three as well. If you have applied or taken out a payday loan or small dollar loan, these companies probably have a file on you. These CRAs include Clarity Services, DataX, Factor Trust, and Microbilt.
Retail Returns
The Retail Equation tracks customer return activity at large retail stores, like Home Depot. When a consumer tries to return a product to a store, the store may pull a report from The Retail Equation to look up the consumer’s return history. If the consumer has had too many returns, the retailer may not allow the consumer to return the product.
Bio
Background Check Issues? Talk to John.
Our attorneys will evaluate your background report for free. We’ll gather the details and discuss your options.