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At ConsumersUnion.org (Nonprofit Publisher of Consumer Reports) the following statement is made:

"Increasingly, credit scores are being used for purposes other than determining whether you will default on a loan or make late payments. For example, some insurers are using low credit scores as indicators to identify individuals they believe are more likely to make claims against their insurance policies. These insurance companies maintain that there is a correlation between poor credit and filing multiple insurance claims. There have been challenges to these practices and legislative attempts to ban this practice. Nonetheless, the practice persists. An accurate credit score can make the difference not only in interest rates charged on loans, but also on the availability and cost of insurance, an important essential for most families."

Also, in an August 3, 2009 article entitled "Credit Report Should Not Be Used By Employers, Lawmakers Say" at Credit.com, Lewis Green reports:

"The Fair Credit Reporting Act currently states that employers must let job candidates know if a credit check is part of the screening process. If someone is denied based on the information in their credit report, they can dispute the information."

However, the reality of what's really going on here is revealed by "Fact Sheet 6: How Private Is My Credit Report?" at the Privacy Rights Clearinghouse website (which discusses what's allowed, and what isn't, regarding the uses of credit reports for marketing purposes):

"...The practice of generating and selling lists for use in 'pre-approved' credit and insurance offers is allowed by law. TransUnion, Experian and Equifax all engage in selling lists of consumers who meet certain criteria in order to receive a 'firm' offer of credit or insurance. This is the source of the many pre-approved credit offers most consumers receive in the mail. 'Pre-approved' and so-called 'firm' offers of credit, however, can be somewhat misleading. If you respond, the creditor may access your report before you are actually granted credit. They can deny your credit application at that time. This is explained in the fine print on the pre-approved offer."

By the way, you can opt out of being included in pre-approved offers of credit by calling (888) 567-8688 or visiting www.optoutprescreen.com - but the bottom line is that, despite all the laws and regulations that lead you to believe your credit report is private information, don't be fooled.

In the final analysis, Uncle Sam doesn't want anything of yours to be private.

- Ed Smith