Using screening reports lawfully (FCRA & adverse action)

Plain language

If you deny an applicant or charge more based on a credit or background report, federal law (FCRA) requires you to give an 'adverse action' notice telling them which agency provided the report and that they can dispute it. Apply the same criteria to everyone.

Statute text

When a tenant-screening decision is based in whole or part on a consumer report, the federal Fair Credit Reporting Act (FCRA) requires the landlord to provide an adverse-action notice identifying the reporting agency, stating the agency did not make the decision, and informing the applicant of their right to a free copy of the report and to dispute inaccuracies. To avoid fair-housing claims, use written, consistent, non-discriminatory criteria for every applicant, and keep records of the basis for each decision.

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