State RegulationsAZ specificDifficulty 3/5
How does an investigative consumer report differ from an ordinary consumer report under the federal Fair Credit Reporting Act?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under the Fair Credit Reporting Act's investigative-report provisions at 15 USC 1681-1681d, an investigative consumer report goes beyond file data: it includes information on the consumer's character, general reputation, personal characteristics, and mode of living gathered through interviews with neighbors, friends, and associates. The consumer has rights to be informed of the report and to request further details of its nature and scope.
Why the other options are wrong
- A) the consumer must be given notice and may request the nature and scope of the investigation.
- C) an investigative report is precisely the narrative, interview-based opposite of a bare score file.
- D) insurers commonly order investigative reports for underwriting; they are not employment-only tools.
Memory hook
Investigative means asking the neighbors.