Consumer Reporting Agency - What They Are And Their Uses

What Is a Consumer Reporting Agency?

As more and more companies are performing detailed examinations into the past of any job applicant, consumer credit reporting agencies have been created to condense and manage information about a person’s history. This information is not used by these agencies for any other reason than to sell it on to companies or individuals who will use it to make an informed decision. The information may be used by a landlord to determine whether or not to rent a house to a hopeful tenant, or it may be used by a driving firm that is looking to know more about their job applicants. For example, a consumer report allows the driving firm to check driver’s license of any potential employee.

In its essence, a consumer report acts as a character report that allows companies, banks, landlords, et cetera, to make decisions based on factual, statistical information as well as judgement. The information is collected and collated, and included in the report is information such as a person’s credit history, any bankruptcy filings, their medical history, and their driving records. A company may purchase such information for a number of reasons, including preserving the integrity of their workplace by hiring the right kind of character, as well as removing the possibility of having a negligent hiring case being brought against them at a future date.

Consumer reports, provided by a consumer reporting agency, are also known as investigative consumer report. The term is self-explanatory; the report acts as an investigation into a person’s background, which gives people insight into their character, reputation, and whether they will be a hindrance, a detriment, or whether they will have a positive impact. The report is much different to a simple credit report, which deals simply with a persons credit history, and helps to determine whether they have a viable chance of getting a loan or credit. An investigative report is all-encompassing, and if a company orders any individuals report, the individual will be informed. If a business wishes to purchase a report on any future employee, the law demands that they inform the individual first and get their blessing.

There exist a great many consumer reporting agencies in the US, and finding the right one can be a difficult task for any individual or company. Each agency may provide different types of reports, and some may be local whilst others may be nationwide. For this reason, many customers use a consumer reporting agency list to help them make the right decision.

Consumer reports are becoming more and more important in the employment sector. We at 4SafeDrivers provide background checks as well as employment screenings, and we offer a professional service at affordable prices that gives businesses the peace of mind they require when making that all important hiring decision. Visit us today to find out how your decision making can improve and enhance the performance of your business.

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