- Credit reports are important for businesses to determine who to lend to
- Credit reports can also affect decisions made by landlords, insurers, and employers
- 47% of employers conduct credit checks on potential hires
- There are three major credit reporting firms: Equifax, Experian, and TransUnion
- Credit reports can contain errors and may include debt from medical expenses
- Credit reporting agencies can mistakenly mix up individuals with similar names or even label them as terrorists
- Background check agencies can also have inaccuracies, such as mistaking someone for a criminal or sex offender
- There are hundreds of companies providing background checks that may include credit information.

- The performance skills of a person are discussed, suggesting they could be a triple threat.
- Mistakes made by credit bureaus can have serious consequences for individuals.
- GIS and their affiliates had to pay $13 million in fines and damages.
- The Fair Credit Reporting Act allows individuals to obtain a copy of their credit reports once a year.
- Errors in credit reports can be difficult to fix, as shown by Judy Thomas' six-year battle.
- The three major credit bureaus have received the most complaints to the CFPB.
- Background check companies have a loophole where they don't keep files on all consumers.
- Some background check companies refuse to sell individuals their own reports.
- Staffers who bought their own background checks found errors and mistaken identities.
- The background check industry is not closely monitored, and there is no national list of companies.
- The industry has been complacent and downplays the impact of errors.
- The author suggests creating terrible companies with similar names to the credit bureaus to highlight the jeopardy they place people in.

Credit reports play a surprisingly large role in our lives, but even more surprising is how often they contain critical mistakes. John Oliver helps credit agencies see why this is a problem. 

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-♪ ♪ -♪ -♪ Music playing ♪ -♪ -♪ Music playing ♪ -♪ Credit reports.

The basis for the single most important three-digit number in your whole life, other than, of course, 311, the Beatles of rap rock.

-♪ Music playing ♪ -♪ Audience exclaiming ♪ Measuring Credit enables businesses to know who to lend to.

It's critical to our economy, and it always has been.

Millions of people use credit to buy the things that add up to a better living.

Well, there's sure a lot of things that I'd like to buy for better living.

To earn credit, first, you have to develop your character.

You have to have capacity to pay your bills.

Scoring high on these 3 Cs is essential to earn a good credit rating.

Of course, back then, there was a fourth C determining your access to credit, namely, what color you were.

It's a little bit weird that 1 didn't make the movie.

But you might be surprised at just how many aspects of your life your credit report can affect.

Because it's not just banks deciding whether to lend you money, it's also landlords deciding whether to rent you an apartment, insurers setting your rates, and even employers using it to decide whether or not to hire you.

47% of employers do conduct credit checks on new potential hires, and it is legal if the employer gets permission from the applicant.

That's right, nearly half of employers delve into credit histories when hiring.

And just look on Craigslist, because you'll find credit checks are required in all sorts of job listings, from managing a Benihana in Cincinnati, to this 1, which reads, who runs those fireworks tents?

Application with good credit check required.

They don't need to bring credit into that job, they just need to ask the question, what do you think of fireworks?

And then hear the answer, fireworks are fucking sick, bro!

The only 3 digits they need to see are the ones on that person's 2 hands.

All 3 aggressively market their products for uses beyond lending.

For instance, listen to how Experian convinces employers that your credits may reflect your future job performance.

If you manage your credit well, then it's very likely you're going to manage the company's money well.

Because, look at me, my credit is probably fine, but I routinely waste HBO's money on stupid costumes, pyrotechnic displays, and checkered dress shirts.

I clearly cannot manage this company's money well.

Now, as for TransUnion, their website explicitly states that credit reports help employers make decisions quickly and easily when deciding on potential candidates, which is a little surprising given this exchange between a representative from TransUnion and an Oregon legislator.

What is the evidence that there's a strong correlation between accessing an applicant's credit history and eventual problems of loss to the employer or to the clients, I guess, in that case.

I would say that there, at this point, we don't have any research to show any statistical correlation between what's in somebody's credit report and their job performance, or their likelihood to commit fraud.

Okay, so they admit there is no evidence of a correlation, which does make sense, because a good credit score could mean you're unlikely to commit fraud, but it could also mean that you're so...

And incidentally, not 30 seconds later, that guy said this.

Given all things equal between 2 or 3 job applicants, if a person has a high amount of debt versus somebody who doesn't, and all things other being equal, well, maybe they want to consider that.

So wait, he's saying there's no proof of a correlation, but you're free to imagine that there is.

I can imagine that eating alphabet soup will increase my vocabulary.

But look, giving too much credence to credit reports as a measure of character may be a big mistake.

First, over half the debt on credit reports comes from medical expenses, and it seems unfair to judge someone for that.

No 1 chooses to be sick, with the possible exception of Julianne Moore taking a run at Best Actress.

But also, credit reports can contain a shocking number of errors.

A new government study found about 25% of consumers have an error in 1 of their credit reports.

The study also found about 1 in 20 had significant errors that could cause them to pay more for a car loan or a mortgage.

1 in 4 had an error, and 1 in 20 were seriously wrong.

If every 20th Frosty that Wendy sold turned out to be a cup of warm goat semen, we would want some accountability, and we'd want it fast.

And look, those errors can be anything from including debt that you've already repaid to mixing you up with someone else entirely.

Take what happened to a woman called Judy Thomas.

She couldn't figure out why she kept getting turned down for loans until she looked at her credit report.

I saw debt from a veterinarian clinic in Utah.

hell's her debt doing on my credit report?

How can someone called Judy Thomas be mixed up with Judith Kendall?

And also, if she's going to be mistaken for anyone, how is it not Leslie Stahl?

And it actually gets worse, Because if a credit reporting agency matches your name to a list of suspected criminals the U.S.

Has sanctions against, as they did with Amit Patel, you may be in for an unpleasant surprise.

After being denied his dream apartment, he asked his landlord why.

As an answer, the landlord forwarded his credit report.

Because 1, he is not a terrorist, and 2, I do hope we have a better strategy for dealing with terrorists than flagging their credit reports and denying them their dream apartments.

And being mixed up with a terrorist is not even the worst thing a credit bureau can do to someone.

Helen McGill was shocked when she went to buy a travel trailer to learn she was dead.

The financial manager came out and said, do you have, like, a copy of your card because you keep coming up deceased?

3 major credit bureaus listed her as deceased.

I even paid at that point, too, to get my credit score.

You can't get anything when you're deceased.

Just 1 error on your credit report, and suddenly the world treats you like a mean girl treats the high school debate team.

It would be bad enough if this just involved the 3 big credit bureaus.

But on top of that, there are now hundreds of different companies providing even broader background checks, which may bundle credit information with things like criminal or driving records.

And while some companies appear to operate responsibly, others, like General Information Services, or JIS, do things that make you doubt their judgment.

We actually found this fun video they made featuring Snow White coming to them for help.

Now, fairy tale isn't an industry that we specialize in, but lucky for you, our magic mirror can find anything worth locating.

If only you were in the insurance industry, we've created tons of solutions for those guys.

Because it's hard enough to accept judgment from a company that would do that, let alone deliver it with the acting skill of a shy third grader.

And background check agencies can take all the problems of credit reporting while adding a few more.

As we've discussed before on this show, a criminal record does not necessarily mean you're a bad person or that you shouldn't be hired.

But, if you are going to use a criminal background check to make decisions, at the very least, they should be accurate.

No relation to the actor, obviously, or to the 3 different sex offenders 1 company confused him with, even though 1 of those convictions happened when Jackson was just 3 years old.

The background check company was aware that Mr.

Jackson is only 30 years old, so it clearly couldn't have been him.

And obviously he couldn't be all 3 sex offenders at the same time.

Of course not, because there's only 1 person who could pull off being 3 sex offenders at the same time, and that is Mr.

I'm not saying he is, I'm saying he has got the performance chops to make you believe it is possible if he put it might, if he put his mind to it, he could be the literal triple threat.

And remember, these mistakes can cost people housing and jobs.

It is no wonder that many firms have wound up facing legal challenges.

For instance, just last year, GIS and their affiliates had to jizz out 13 million dollars in fines and damages.

And while they admit no wrongdoing, they've now lost so much money, their next shitty video is probably just gonna be a filthy parrot in an old warehouse screaming, -"Polly wants a background check." -$5,000.

And at this point, you are probably thinking, well, holy shit, I should probably check my background and credit reports.

Well, the good news is, under a law called the Fair Credit Reporting Act, the big 3 credit firms are required to give you a copy once a year.

And there's even an official site where you can get yours.

But if you do spot an error, your trouble may just be beginning.

It took her a surprisingly long time to get her credit fixed.

It became a six-year battle with credit agencies, requiring box loads of correspondents to try and prove that she was Judy Thomas, not Judith Kendall, all to no avail.

I also hired a local attorney to try and straighten it out.

We had everything certified, that this is Judy Thomas, this is where I live, I've never gone by the name of Kendall, I've never even been to Utah, let alone Owing a cable company in Utah.

At this point, I'm surprised she didn't just go, you know what, f**k it, I'm Judith Kendall.

I'm moving to Utah and I'm getting a sick pet and a cable package.

At least then, my life will make some fucking sense to me.

It's probably not surprising that when we crunched the numbers, we discovered that the 3 big credit bureaus have been the subject of the most complaints to the CFPB since the start of last year.

And they may say that sometimes they receive inaccurate data from creditors so the mistakes don't originate with them.

But if that's true, their method for resolving those problems clearly needs to be better.

And in a settlement agreement just Last March, they actually pledged to improve their dispute resolution process.

But before you get too hopeful about that, it's worth noting the industry has claimed for decades that they are always improving their accuracy.

And yet, for 25 years now, the news stories about them have had something of a similar tone.

We saw a recent study that said 25% of credit reports had errors serious enough to deny you credit.

A new study finds a staggering number of credit reports contain mistakes.

A new study says credit reports frequently have errors that can be very costly for consumers.

Public Interest Research Group found nearly one-third of all credit reports contain serious errors.

You don't have to spend long preparing a broadcast about credit agencies before you learn 1 simple truth.

Everyone, and I mean everyone, has a horror story.

It's pretty obvious that problems with credit agencies are a classic news story trope, like, oldest person dies, or scary new teen sex trends.

Coming up, we've all heard of Netflix and chill, but what does it mean when your team says they're going to Hulu and Rimjob?

-♪ Ooh, ooh, ooh, ooh, ooh, ooh, ooh, ooh, ooh, ooh, ooh, ooh, ooh ♪ There is...

The point is, there is nothing new about this problem.

In fact, when we were researching Judy Thomas' story, we found a news clip about a lawsuit from 2002 that gave us déjà vu.

It was the culmination of a six-year battle for Judy Thomas, who tried repeatedly to get TransUnion to clear up the mistakes on her credit report.

So Judy Thomas was not even the only Judy Thomas this had happened to.

If you or someone you know is named Judy Thomas, give up!

There is no hope in life for duties like you.

And if anything, things are even worse with background check companies, because they are also required to give you a copy of your report if you request it.

Because unlike the credit bureaus, most of them don't keep files on all consumers.

They just search for data when someone pays them to.

And if you're about to apply for a job or an apartment, you might think, well, hold on, I want to be sure that there isn't a problem on my report, so I'll just buy it first myself." So we actually asked these companies if they'd let us do that, and they all said no.

Meaning, if they confuse you with a sex offender, you might not find out until that job or apartment is all but gone.

And of course, you know who you'll have lost it to, don't you?

Of course, you wouldn't even think he could take a certified public accountant job, but he can!

And he does it so well, and he's so likable while he does it!

Now, to be fair, to be fair here, some companies will sell you your own report.

So we had some of our staffers buy their own background checks from a few companies.

While most of them came back fine, 5 of Our staffers' reports included alias names that they'd never heard of before.

And 1 staffer, Charles Wilson, was mistaken for a man who was indicted for Medicaid fraud in Florida.

Now, that site did say Charles' listing was pending verification, and it was later removed from his report, but it was still too late.

Because by that time, in a Spartacus-style show of support, our entire office had already rallied around Charles and committed Medicaid fraud.

And listen, given the stakes here, you would hope that these background check companies are being closely monitored.

But as this FTC official admits, there is an alarming amount that they don't know.

Is there any kind of national list of these companies?

So we don't know how many of these companies are even out there.

Yeah, no shit, that's 1 of the challenges.

You can't just lose track of how many background check companies there are, the way that we've all lost track of the number of Oreo flavors.

--ROOTS LAUGHING- And the problem is, this whole industry seems uncomfortably complacent.

In fact, remember that FTC study that I mentioned at the start which showed that 1 in 20 credit reports had serious errors?

An industry trade group put out a press release in response to that with the title, FTC report confirms credit reports are accurate.

Arguing that it showed 95 percent of consumers are unaffected by errors in their credit reports.

But when you are holding records for more than 200 million individuals, that 5 percent error rate affects 10 million people.

They're basically saying, great news everyone, We only fucked up a group equivalent to the entire population of Sweden.

If only we could make this whole industry understand the jeopardy that they're placing people in.

Because remember the big 3 credit companies, Equifax, Experian, and TransUnion?

Well, we started 3 terrible companies with names that are problematically similar to theirs.

--SPEAKERS LAUGHING- Specifically, Equifax, Experian, and TransUnion.

If you just visit Equifax.com, you'll see that they take shelter animals to customers' homes, where the animals lick peanut butter off people's genitals before being immediately returned to the shelter.

Equifax is just an awful company, but don't worry, Equifax, I can't imagine anyone will mistake them for you.

And if you go to Experian.com, you'll find a company that sends people to whisper passages from Mein Kampf into babies' ears.

With the permission of neither the baby nor the parents.

And finally, don't miss TramsOnion.com, where you can buy these delicious-looking steaks made from the flesh of dead orcas who worked at SeaWorld.

It would clearly be an absolute disaster for the credit agencies if they were mistaken for any of these companies.

But don't worry, I'm sure that won't happen 95% of the time.

And apparently, that's good enough, right?


Speaker 0: -♪ ♪ -♪ -♪ Music playing ♪ -♪ -♪ Music playing ♪ -♪ Credit reports. The basis for the single most important three-digit number in your whole life, other than, of course, 311, the Beatles of rap rock. -♪ Music playing ♪ -♪ Audience exclaiming ♪ Measuring Credit enables businesses to know who to lend to. It's critical to our economy, and it always has been.

Speaker 1: Millions of people use credit to buy the things that add up to a better living.

Speaker 2: Well, there's sure a lot of things that I'd like to buy for better living. How about giving me a little credit?

Speaker 1: Nobody gives you credit, John. It's something you have to earn.

Speaker 3: To earn credit, first, you have to develop your character. You have to have capacity to pay your bills. And third, you need some capital. Scoring high on these 3 Cs is essential to earn a good credit rating.

Speaker 0: Of course, back then, there was a fourth C determining your access to credit, namely, what color you were. It's a little bit weird that 1 didn't make the movie. But you might be surprised at just how many aspects of your life your credit report can affect. Because it's not just banks deciding whether to lend you money, it's also landlords deciding whether to rent you an apartment, insurers setting your rates, and even employers using it to decide whether or not to hire you.

Speaker 4: 47% of employers do conduct credit checks on new potential hires, and it is legal if the employer gets permission from the applicant.

Speaker 0: That's right, nearly half of employers delve into credit histories when hiring. And just look on Craigslist, because you'll find credit checks are required in all sorts of job listings, from managing a Benihana in Cincinnati, to this 1, which reads, who runs those fireworks tents? It could be you. Application with good credit check required. Which is clearly ridiculous.

They don't need to bring credit into that job, they just need to ask the question, what do you think of fireworks? And then hear the answer, fireworks are fucking sick, bro! I fucking love lighting those fuckers! The only 3 digits they need to see are the ones on that person's 2 hands. There...

There are... There are 3 big credit reporting firms. Equifax, Experian, and TransUnion. All 3 aggressively market their products for uses beyond lending. For instance, listen to how Experian convinces employers that your credits may reflect your future job performance.

Speaker 5: If you manage your credit well, then it's very likely you're going to manage the company's money well.

Speaker 0: Yeah, is it though? Because, look at me, my credit is probably fine, but I routinely waste HBO's money on stupid costumes, pyrotechnic displays, and checkered dress shirts. I clearly cannot manage this company's money well. Now, as for TransUnion, their website explicitly states that credit reports help employers make decisions quickly and easily when deciding on potential candidates, which is a little surprising given this exchange between a representative from TransUnion and an Oregon legislator.

Speaker 6: What is the evidence that there's a strong correlation between accessing an applicant's credit history and eventual problems of loss to the employer or to the clients, I guess, in that case.

Speaker 7: I would say that there, at this point, we don't have any research to show any statistical correlation between what's in somebody's credit report and their job performance, or their likelihood to commit fraud.

Speaker 0: Okay, so they admit there is no evidence of a correlation, which does make sense, because a good credit score could mean you're unlikely to commit fraud, but it could also mean that you're so... Amazing at it, you've never been caught. And incidentally, not 30 seconds later, that guy said this.

Speaker 7: Given all things equal between 2 or 3 job applicants, if a person has a high amount of debt versus somebody who doesn't, and all things other being equal, well, maybe they want to consider that.

Speaker 0: So wait, he's saying there's no proof of a correlation, but you're free to imagine that there is. Which is not a strong argument. I can imagine that eating alphabet soup will increase my vocabulary. That does not make it indubitable. Ooh, indubitable!

I knew I ate a lot of letters yesterday. Indubitable! But look, giving too much credence to credit reports as a measure of character may be a big mistake. First, over half the debt on credit reports comes from medical expenses, and it seems unfair to judge someone for that. No 1 chooses to be sick, with the possible exception of Julianne Moore taking a run at Best Actress.

But also, credit reports can contain a shocking number of errors.

Speaker 8: A new government study found about 25% of consumers have an error in 1 of their credit reports. The study also found about 1 in 20 had significant errors that could cause them to pay more for a car loan or a mortgage.

Speaker 0: Just think about that. 1 in 4 had an error, and 1 in 20 were seriously wrong. And that is not good. If every 20th Frosty that Wendy sold turned out to be a cup of warm goat semen, we would want some accountability, and we'd want it fast. At least freeze it.

And... And look, those errors can be anything from including debt that you've already repaid to mixing you up with someone else entirely. Take what happened to a woman called Judy Thomas. She couldn't figure out why she kept getting turned down for loans until she looked at her credit report.

Speaker 9: I saw debt from Utah Medical Center. I saw debt from a veterinarian clinic in Utah. I saw collections... For a Judith Kendall.

Speaker 10: Judith Kendall. Not Judy Thomas. Correct. What's going through your mind?

Speaker 9: What the hell's she doing on my credit

Speaker 0: report? Right. What the

Speaker 9: hell's her debt doing on my credit report?

Speaker 0: Wow. How can someone called Judy Thomas be mixed up with Judith Kendall? And also, if she's going to be mistaken for anyone, how is it not Leslie Stahl? Because that is spooky. And it actually gets worse, Because if a credit reporting agency matches your name to a list of suspected criminals the U.S.

Has sanctions against, as they did with Amit Patel, you may be in for an unpleasant surprise.

Speaker 11: After being denied his dream apartment, he asked his landlord why. As an answer, the landlord forwarded his credit report. Can you read this for me? What does that say? Terrorist.

Speaker 0: Holy shit! That is terrible! Because 1, he is not a terrorist, and 2, I do hope we have a better strategy for dealing with terrorists than flagging their credit reports and denying them their dream apartments. Hey, not in America. Not in America.

And being mixed up with a terrorist is not even the worst thing a credit bureau can do to someone.

Speaker 12: Helen McGill was shocked when she went to buy a travel trailer to learn she was dead.

Speaker 5: The financial manager came out and said, do you have, like, a copy of your card because you keep coming up deceased?

Speaker 0: So I

Speaker 5: was like, there's no way.

Speaker 12: 3 major credit bureaus listed her as deceased.

Speaker 5: I even paid at that point, too, to get my credit score. You can't get anything when you're deceased. No credit score, there's nothing. You don't even exist.

Speaker 0: Just 1 error on your credit report, and suddenly the world treats you like a mean girl treats the high school debate team. You're nothing, Amberleigh. You don't even exist. -♪ ♪ -♪ And here is the thing. It would be bad enough if this just involved the 3 big credit bureaus.

But on top of that, there are now hundreds of different companies providing even broader background checks, which may bundle credit information with things like criminal or driving records. And while some companies appear to operate responsibly, others, like General Information Services, or JIS, do things that make you doubt their judgment. We actually found this fun video they made featuring Snow White coming to them for help.

Speaker 13: Now, fairy tale isn't an industry that we specialize in, but lucky for you, our magic mirror can find anything worth locating. If only you were in the insurance industry, we've created tons of solutions for those guys. -♪ Oh, my...

Speaker 0: -♪

Speaker 8: Oh, my! Was that a fairy?

Speaker 13: We're an equal opportunity employer.

Speaker 0: Whoa! Whoa, whoa, whoa, whoa, whoa. Hold up. Was that a homophobic fairy joke? Because it's hard enough to accept judgment from a company that would do that, let alone deliver it with the acting skill of a shy third grader.

And background check agencies can take all the problems of credit reporting while adding a few more. And let's begin with the obvious here. As we've discussed before on this show, a criminal record does not necessarily mean you're a bad person or that you shouldn't be hired. But, if you are going to use a criminal background check to make decisions, at the very least, they should be accurate. And frequently, they are not.

Take Samuel Jackson from Chicago. No relation to the actor, obviously, or to the 3 different sex offenders 1 company confused him with, even though 1 of those convictions happened when Jackson was just 3 years old. Or as his lawyer puts it...

Speaker 14: The background check company was aware that Mr. Jackson is only 30 years old, so it clearly couldn't have been him. And obviously he couldn't be all 3 sex offenders at the same time.

Speaker 0: Yeah, of course not. Of course not, because there's only 1 person who could pull off being 3 sex offenders at the same time, and that is Mr. Neil Patrick Harris. I'm not saying he is, I'm saying he has got the performance chops to make you believe it is possible if he put it might, if he put his mind to it, he could be the literal triple threat. He's that good.

He's that good a performer. And remember, these mistakes can cost people housing and jobs. It is no wonder that many firms have wound up facing legal challenges. For instance, just last year, GIS and their affiliates had to jizz out 13 million dollars in fines and damages. And while they admit no wrongdoing, they've now lost so much money, their next shitty video is probably just gonna be a filthy parrot in an old warehouse screaming, -"Polly wants a background check." -$5,000.

-$5,000. -$5,000. And at this point, you are probably thinking, well, holy shit, I should probably check my background and credit reports. Well, the good news is, under a law called the Fair Credit Reporting Act, the big 3 credit firms are required to give you a copy once a year. And there's even an official site where you can get yours.

But if you do spot an error, your trouble may just be beginning. Remember Judy Thomas? It took her a surprisingly long time to get her credit fixed.

Speaker 10: It became a six-year battle with credit agencies, requiring box loads of correspondents to try and prove that she was Judy Thomas, not Judith Kendall, all to no avail.

Speaker 9: I also hired a local attorney to try and straighten it out. We had everything certified, that this is Judy Thomas, this is where I live, I've never gone by the name of Kendall, I've never even been to Utah, let alone Owing a cable company in Utah.

Speaker 10: And what happened?

Speaker 0: Nothing. Oh, come on. At this point, I'm surprised she didn't just go, you know what, f**k it, I'm Judith Kendall. I'm moving to Utah and I'm getting a sick pet and a cable package. At least then, my life will make some fucking sense to me.

It is... It's probably not surprising that when we crunched the numbers, we discovered that the 3 big credit bureaus have been the subject of the most complaints to the CFPB since the start of last year. And they may say that sometimes they receive inaccurate data from creditors so the mistakes don't originate with them. But if that's true, their method for resolving those problems clearly needs to be better. And in a settlement agreement just Last March, they actually pledged to improve their dispute resolution process.

But before you get too hopeful about that, it's worth noting the industry has claimed for decades that they are always improving their accuracy. And yet, for 25 years now, the news stories about them have had something of a similar tone.

Speaker 4: We saw a recent study that said 25% of credit reports had errors serious enough to deny you credit.

Speaker 9: A new study finds a staggering number of credit reports contain mistakes.

Speaker 15: A new study says credit reports frequently have errors that can be very costly for consumers.

Speaker 5: A survey by the U.S. Public Interest Research Group found nearly one-third of all credit reports contain serious errors.

Speaker 15: You don't have to spend long preparing a broadcast about credit agencies before you learn 1 simple truth. Everyone, and I mean everyone, has a horror story.

Speaker 0: It's pretty obvious that problems with credit agencies are a classic news story trope, like, oldest person dies, or scary new teen sex trends. Coming up, we've all heard of Netflix and chill, but what does it mean when your team says they're going to Hulu and Rimjob? It is not as innocent as it sounds. -♪ Ooh, ooh, ooh, ooh, ooh, ooh, ooh, ooh, ooh, ooh, ooh, ooh, ooh ♪ There is... The point is, there is nothing new about this problem.

In fact, when we were researching Judy Thomas' story, we found a news clip about a lawsuit from 2002 that gave us déjà vu.

Speaker 16: It was the culmination of a six-year battle for Judy Thomas, who tried repeatedly to get TransUnion to clear up the mistakes on her credit report.

Speaker 0: Another Judy Thomas! So Judy Thomas was not even the only Judy Thomas this had happened to. The lesson here is pretty simple. If you or someone you know is named Judy Thomas, give up! There is no hope in life for duties like you.

And if anything, things are even worse with background check companies, because they are also required to give you a copy of your report if you request it. But, there's a massive loophole there. Because unlike the credit bureaus, most of them don't keep files on all consumers. They just search for data when someone pays them to. And if you're about to apply for a job or an apartment, you might think, well, hold on, I want to be sure that there isn't a problem on my report, so I'll just buy it first myself." So we actually asked these companies if they'd let us do that, and they all said no.

Meaning, if they confuse you with a sex offender, you might not find out until that job or apartment is all but gone. And of course, you know who you'll have lost it to, don't you? Neil Patrick Harris! Of course, you wouldn't even think he could take a certified public accountant job, but he can! And he does it so well, and he's so likable while he does it!

He is so good! Now, to be fair, to be fair here, some companies will sell you your own report. So we had some of our staffers buy their own background checks from a few companies. While most of them came back fine, 5 of Our staffers' reports included alias names that they'd never heard of before. And 1 staffer, Charles Wilson, was mistaken for a man who was indicted for Medicaid fraud in Florida.

Now, that site did say Charles' listing was pending verification, and it was later removed from his report, but it was still too late. Because by that time, in a Spartacus-style show of support, our entire office had already rallied around Charles and committed Medicaid fraud. Because we care about him. And listen, given the stakes here, you would hope that these background check companies are being closely monitored. But as this FTC official admits, there is an alarming amount that they don't know.

Speaker 5: Is there any kind of national list of these companies? No, there isn't. So we don't know how many of these companies are even out there. No, we don't. And I think that's 1 of the challenges.

Speaker 0: Yeah, no shit, that's 1 of the challenges. You can't just lose track of how many background check companies there are, the way that we've all lost track of the number of Oreo flavors. --ROOTS LAUGHING- Roots beer float? Are you f***ing kidding me? --ROOTS LAUGHING- You are sick, Oreo!

You're all sick! --ROOTS LAUGHING- And the problem is, this whole industry seems uncomfortably complacent. In fact, remember that FTC study that I mentioned at the start which showed that 1 in 20 credit reports had serious errors? An industry trade group put out a press release in response to that with the title, FTC report confirms credit reports are accurate. Arguing that it showed 95 percent of consumers are unaffected by errors in their credit reports.

But when you are holding records for more than 200 million individuals, that 5 percent error rate affects 10 million people. They're basically saying, great news everyone, We only fucked up a group equivalent to the entire population of Sweden. We're the fucking greatest! If only we could make this whole industry understand the jeopardy that they're placing people in. Do you know what?

Maybe we can. Because remember the big 3 credit companies, Equifax, Experian, and TransUnion? Well, we started 3 terrible companies with names that are problematically similar to theirs. --SPEAKERS LAUGHING- Specifically, Equifax, Experian, and TransUnion. --LAUGHTER- what do those companies do?

Great question. If you just visit Equifax.com, you'll see that they take shelter animals to customers' homes, where the animals lick peanut butter off people's genitals before being immediately returned to the shelter. Equifax is just an awful company, but don't worry, Equifax, I can't imagine anyone will mistake them for you. And if you go to Experian.com, you'll find a company that sends people to whisper passages from Mein Kampf into babies' ears. With the permission of neither the baby nor the parents.

And finally, don't miss TramsOnion.com, where you can buy these delicious-looking steaks made from the flesh of dead orcas who worked at SeaWorld. It would... It would clearly be an absolute disaster for the credit agencies if they were mistaken for any of these companies. But don't worry, I'm sure that won't happen 95% of the time. And apparently, that's good enough, right?

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Credit Reports: Last Week Tonight with John Oliver (HBO)