Legal Definitions - investigative consumer report

An investigative consumer report is a specialized type of background check that gathers detailed, subjective information about an individual's character, general reputation, personal characteristics, or lifestyle. Unlike a standard credit report, which focuses primarily on financial history, this report delves into qualitative aspects of a person's life. The information is often collected through personal interviews with people who know the individual, such as neighbors, friends, former employers, or other associates, to form a comprehensive picture of their conduct and habits. These reports are typically requested by organizations making significant decisions, such as hiring for sensitive positions, approving high-value insurance policies, or evaluating housing applications.

• Example 1: Executive Hiring

  Imagine a major technology company is hiring for a Chief Security Officer position, a role that requires immense trust and discretion. While they will certainly check the candidate's professional references and financial history, they might also commission an investigative consumer report. This report could involve interviewing former colleagues, neighbors, or even community members to assess the candidate's character, ethical conduct, and general reputation for integrity and trustworthiness outside of their direct work experience. This goes beyond verifying employment dates or academic credentials, seeking insights into their personal judgment and reliability.

• Example 2: High-Value Property Rental

  A landlord owning a historic, meticulously maintained property is looking for a new tenant. Beyond checking the applicant's credit score and income, the landlord might request an investigative consumer report. This could involve speaking with previous landlords, current neighbors, or even service providers who have interacted with the applicant to understand their mode of living. For instance, the report might gather information on whether they are known for being quiet and respectful of property, or if they have a reputation for frequent loud gatherings or neglecting property maintenance, which would be crucial for preserving the historic home.

• Example 3: Specialized Insurance Policy

  A person applies for a unique type of insurance policy, such as a large-sum personal liability policy for a high-risk profession or hobby. The insurance provider, in addition to standard medical and financial assessments, might order an investigative consumer report. This report could involve interviews with associates or individuals familiar with the applicant's activities to evaluate their personal characteristics or mode of living related to risk. For example, it might uncover a history of reckless behavior, a reputation for dishonesty in past dealings, or participation in dangerous activities that would not typically appear on a standard application but are relevant to assessing the insurance risk.