. Why CR's & SR's Differ! Some time ago Marie brought up a great issue, which turned out to be a very informative thread, on the subject of why Consumer Reports and Subscriber Reports sometime differ. My copy NOT like creditors' copy. CN's favorite Consumer Law Attorney, David Szwak, (who checks in far too infrequently) weighed in on that thread. His insight, together with Marie's initial subject matter input, combined with recent inquiries from newer members is the reason for this essay. I promise it won't be as torturous in length as I customarily subject you to. Sometimes the reports issued to you, the consumer, are quite different from that which is provided to a Subscriber. A subscriber, of course, is the original creditor who pulls your report to check on your credit worthiness. I intend to address the following: The CRA's Matching Systems / Why the difference exists Where do credit reports come from What you are entitled to receive Requesting your "credit report" Requesting your "credit file" Another example of how just one (seemingly inconsequential) word can change everything[/list=1] The first thing we need to do is drop the conspiratorial hysteria. If a SR contains more information than the CR, it's not because they're purposely trying to screw you as a consumer. There are no "smoke filled board rooms" full of big shots, sitting around trying to figure out a way to cheat you out of the opportunity to borrow money. If we think about that it makes no sense anyway. The CRA's live off the SRâ??s ordered by subscribers. If subscribers can't make money, neither would the CRA. On average 2 million credit reports PER DAY are sold by the 3 primary agencies. So we're not talking about people who are deficient in the ways of making money. So lets examine the issue from purely a technical standpoint by dropping our preconceived notions. Postpone all forms of critical judgement, if you will. It's almost unfortunate that the smoke filled room scenario above is NOT the case. If it were, it would be far easier to fix. Fire the big shots and start over. Unfortunately it's not that simple, as you may have guessed. The problem is far more complex and insidious than that. Where Do Credit Reports Come From? There is NO SUCH THING as a credit report, or credit file. Instead, imagine all the stars of the cosmos. When we look up, on a clear night, we see stars by the billions. No particular star comes to mind, but what strikes me first is the shear volume of them. Far more than we could ever count. Items of information in a CRAâ??s computer system are situated in precisely the same manner. Were we desirous of looking closer at one particular star, we must employ our high powered telescope and "zero in" on the star of our choice. When a consumer or subscriber wishes to "zero in" on one particular person, the CRA employs it's telescope, in the manner of their search mechanism. Each item, floating around in the Cosmo's of the CRA's computer systems has attached to it what are called "identifiers". When the CRA types in certain fields of search criteria, the system will search the entire Cosmo's, that is to say, ALL the items of information in their entire system of records, for ALL the information to which these identifiers are attached. Once that occurs the beginnings of a "credit report" start to emerge. At this point all the information [in this found set] is filtered through the CRA's SCORE algorithms, to generate a score, and then set all on one "file". Now a Credit File has been created. This all happens extraordinarily fast of course. But to understand why 2 types of reports, with differing search criteria, can differ we must understand how this search function operates. So - let's look at a couple of simple examples; An Adverse Relationship Between Search Criteria, and Found Set. Hypothetical search #1: I want to do a search for all females in the United States. Having ONE search criteria will yield, about 150 Million "hits". Hypothetical search #2: Lets add one more component; all females in the United States, who are white, results; about 130 Million "hits". Hypothetical search #3: Changing just one word; All females in the United States, who are black, results; about 20 Million "hits". Adding just one more criteria to the search set yields an entirely different result. Moreover, changing just ONE word in the search criteria, (white to black) changed everything even more, didn't it? As Szwak points out, there's a lot of different ways to input Bank One, for example. i.e. Bank One, Bank 1, Bank One NA, Bank 1 NA, etc.. We can see then that the more expanded [sophisticated] the search criteria, the more limited the "hits" will be. And, the more narrow the search criteria the more the hits will be. In other words; a more expanded set of search criteria will necessarily restrict the found set, And the more restricted the search criteria, the more expanded will be the found set. Additionally, a data furnisher can manipulate that which finds it's way onto your report merely by "tweaking" the input fields in the Metro 2 Reporting System, (such as in the Bank 1 example). That's why sometimes we see duplicate TLâ??s. The Problem: The search criteria for a subscriber to pull your credit report is NOT the same as the criteria used to pull your consumer report. Indeed, when a subscriber pulls your report he is able to use fewer "identifiers" [a more narrow set of search criteria] than you are required to use for a CR, thus yielding an "expanded found set", (more stuff). A Recent Clause in a Lawsuit, against Equifax; 62. Defendant, EQUIFAX, has failed to utilize a search algorithm which is capable of distinguishing between persons with different personal identifiers. The solution would be to beef up the entire computer systems at each CRA. A project which probably involves such expense (and expanse) as the render the mere thought laughable. But there is something YOU can do. Which is where we now must turn. Requesting your "Credit Report"; Here's a snippet from the sample letter for requesting your CR; [/color] Dear Sir/Madame: I hereby request a copy of my credit report. Enclosed please find relevant personal information including a photocopy of my driver's license indicating my current address, and a photocopy of my Social Security card. Continued: .
. As is always the case when we request our "credit report" we, ahem â?¦ we request our "credit report". lol Unfortunately that may NOT be what we want. The definition of "Consumer Report"; § 603. Definitions; rules of construction [15 U.S.C. § 1681a] (1) In general. The term "consumer report" means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for (A) credit or insurance to be used primarily for personal, family, or household purposes; (B) employment purposes; or (C) any other purpose authorized under section 604 [§ 1681b]. [emphasis mine] The Controlling Statute; § 609. Disclosures to consumers [15 U.S.C. § 1681g] (g) The term "file," when used in connection with information on any consumer, means ALL of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored. [emphasis mine] FTC Staff Opines: June 30, 2000 Brinckerhoff to Darcy, Esq. Section 609(a)(1) of the FCRA states that CRAs, including major credit bureaus such as Trans Union, "shall, upon request (by a consumer), clearly and accurately disclose to the consumer . . . All information in the consumer's file at the time of the request" (emphasis added). If the "information in the consumer's file at the time of the request" includes account and social security numbers, the provision thus normally requires that the CRA "clearly and accurately" include such items in its disclosure to consumers. However, because the trigger for a file disclosure is a "request" by a consumer, a CRA may allow consumers (such as the individual in your letter) to choose truncation or other security measures in their own file disclosure. In other words, although Section 609 provides consumers with a right to all information in the file, a CRA may provide a method for the consumer to ask for less than all information and then comply with that "request" when it makes the disclosure. In sum, it is our view that a CRA that always scrambles or truncates account (or social security) numbers does not technically comply with Section 609 because it does not provide "accurate" (and perhaps not "clear") disclosure of "all information" in the file. However, if a consumer's "request" for a file disclosure is framed so as to allow some items in the file to be abbreviated or revised in that fashion, a CRA making such a disclosure would comply with Section 609. [emphasis mine] Incredibly, although the definition of consumer report seems to cover all the same information as does the "file", whether or not you get "ALL" the information is predicated entirely upon how you request it. The CRA's, in their smoother than silk method of operation will disclose "ALL" the information in your "FILE" IF you demand your "FILE", rather than your report. Just one little word can have a profound impact on what we do, as has been demonstrated in the "New 7.5 Year Reporting Period" thread. (The "shall" means "may" controversy). If you do demand your "FULL FILE", can they turn you down? Put simply NO, they can't. But be careful here because just because they can't doesn't necessarily mean they won't. If I demanded my FULL FILE, I'd be perfectly willing to sue for it, just as you should be too. Therefore, think carefully before you get yourself into this dilemma. Are you prepared to NOT accept a "NO" for an answer? August 1, 2000 Keller to Cohan, â?¦ a consumer reporting agency ("CRA"), including a mortgage reporting agency or re-seller, is required to make the consumer disclosures prescribed by Section 609, whether the company designates its records "files" or "archives" or uses any other terminology for the information it retains on a consumer. As your inquiry recognizes, Section 612 of the FCRA requires that "[e]ach consumer reporting agency that maintains a file on a consumer shall make all disclosures pursuant to Section 609 without charge to the consumer" under specified circumstances. Section 609, in turn, provides that every CRA shall disclose to the consumer "[a]ll information in the consumer's file at the time of the request." We reach our conclusion that these provisions require disclosure of all information because of the inclusive definition of "file" in Section 603(g) of the FCRA: The term "file", when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored. [emphasis mine] The use of words such as "retained" and "stored" suggests that a CRA cannot escape its obligation to make disclosure of information on a consumer simply by placing the information in a category that it considers archival. Keller seems to conflict by stating that it doesnâ??t matter at all what the CRA â??CALLSâ? the report. Theyâ??re still required to furnish ALL the information in itâ??s system of records. But then goes on to state the obvious; If a CRA supplies a consumer report, it may reflect that event by an inquiry notation. There is no legal or policy requirement to display the inquiry (other than to the consumer in connection with disclosure pursuant to Section 609(a)(3)). The fact that a consumer report was requested "in error" does not nullify the fact that the report was furnished; that information must be retained by the CRA so that it can comply with Sections 609(a)(3) and 611(d), among other reasons. The requirement to furnish YOU your information is contained in Section 609, and nowhere else. So a technical reading of the word(s) used in 609 would be wise, if you want "ALL" your information. And, one more time: FTC Staff Commentary: Section 603(g) defines file, when used in connection with information on any consumer, to mean "all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored." Continued: .
. FTC Staff Commentary: (16 CFR) 2. General The term file denotes all information on the consumer that is recorded and retained by a consumer reporting agency that might be furnished, or has been furnished, in a consumer report on that consumer. According to the FTC Staff Commentary, not only are you entitled to ALL the information in your file, but also, ALL the information which has "EVER BEEN FURNISHED". Although if you do try it be prepared to be told to pound sand. lol So what to do All you need to do (if you chose to do so at all) is tweak the letter in the sample section, complete with a new understanding of exactly what it is you're requesting. Knowing in advance what you're trying to accomplish can aid in the proper selection of which letter should be used. Since we don't recommend a literal copy of our samples, let's try a couple of iterations; «Your Name» «Address1» «Address2» «City», «State» «Zip» «Company» «Address1» «Address2» «City», «State» «Zip» «Date» Dear Sir/Madame: [Option #1:] Pursuant to § 609. Disclosures to consumers [15 U.S.C. § 1681g], I hereby request ALL information specific to my entire credit FILE. To include 100% of all information pertaining to this consumer, regardless of [but not limited to] how such may be stored, retrieved, partitioned, segregated, furnished or otherwise processed. [Option #2:] Pursuant to § 609. Disclosures to consumers [15 U.S.C. § 1681g], I hereby request that which is commonly known as the "Full Factual Report", which is presumed to be the same information which might be available to any creditor seeking a subscriber report pursuant to § 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]. To include 100% of all information pertaining to this consumer request, regardless of [but not limited to] how such may be stored, retrieved, partitioned, segregated, furnished or otherwise processed. The FCRA stipulates what information is to be available upon my request: § 609. Disclosures to consumers [15 U.S.C. § 1681g] (g) The term "file," when used in connection with information on any consumer, means ALL of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored. Enclosed please find relevant personal information including a photocopy of my driver's license indicating my current address, and a photocopy of my Social Security card. Full Name: <your name> DOB: <your birthdate> SSN: <your SSN> Current Address: <current address> Former Address: <former address> Thank you. «Signature» «Your Name» In Conclusion: Here's a thought; Dear Sir/Madame: ........... FTC Staff Commentary: Section 603(g) The term file denotes all information on the consumer that is recorded and retained by a consumer reporting agency that might be furnished, or has been furnished, in a consumer report on that consumer. Therefore, pursuant to Pursuant to § 609. Disclosures to consumers [15 U.S.C. § 1681g] please include 100% of ALL information which has "EVER been furnished" to ANY other party, since the beginning of human history! Thank you. JUST KIDDEN .
Hey I loved it!!! I am surprised no one said anything also. I just read it tonight and hope it is tested with the right people. Personally I am to scared to wake up sleeping dogs, if you know what I mean. My FICO score doesn't reflect the dogs are awake at this point.
