Credit Headers Still Alive -- For Now

Posted September 28, 2000

The IRSG and the Federal Trade Commission have reached an accord to prolong the availability of credit headers, according to a source close to the IRSG. According to the source, credit headers will remain available until July 1, 2001 while litigation filed by the IRSG against the FTC plays out in the courts. Previously, credit headers were to be outlawed November 13. .)

Both the IRSG and the attorneys representing the FTC have declined to comment on the agreement. The IRSG website irsg.org remains dark on the subject as well.

FTC Kills Credit Headers!

by Robert Scott, P.I.

The Federal Trade Commission has banned unrestricted access to credit headers -- the data source most used by private investigators and others to locate missing persons.  Effective November 12, 2000 credit headers will no longer be available unless the user has a permissible purpose to access the information under the Fair Credit Reporting Act.

What does this mean to private investigators and other users of this data? If they need to locate a criminal suspect, witness, lost family member or lost-love, credit headers will no longer be available for use. If they need the information for employment or debt-collection purposes, or the "valuation of a credit risk", the information will be available -- although perhaps only in the form of a full credit report.

Another question which remains unanswered is if the credit bureaus who sell "header" information will continue to offer the product due to reduced demand. In short, after November 12, investigators may have to choose between obtaining a full credit report (with a FCRA permissible purpose) or nothing.

The FTC ruling comes in the wake of last year's enactment of the Financial Services Modernization Act (See article below) which required FTC action. In its 159 page ruling, the FTC acknowledged receiving hundreds of letters from private investigators in support of continued access to credit header data.

Lawsuit Imminent?

I've learned through a confidential source close to the three major credit bureaus that one or more of the companies will likely file a legal action against the FTC to attempt to prevent the shut off of credit headers.