Many landlords don’t understand their responsibilities under the Fair Credit Reporting Act, and that could get them in trouble as a result, says Scott Brueggeman, publisher of CompleteLandlord.com.
The law, which is enforced by the Federal Trade Commission, is designed to promote accuracy and ensure the privacy of the information used in consumer reports. It doesn’t just apply to banks and financial institutions. Landlords must comply with this law when dealing with prospective tenants, Brueggeman says.
Landlords who require a credit report as part of the application process must get the prospective tenant’s written permission to run the credit report. If a landlord declines the application of a prospective tenant based upon the results of the credit report, the landlord must disclose that information to the prospective tenant in a notice of adverse action.
Brueggeman says many landlords think they’re off the hook if they don’t base their decision on the credit report, but that’s incorrect. “Even if a landlord makes a decision not to rent to a potential tenant based primarily on other information, such as salary, they must send a notice if any part of the decision was based upon information contained in their credit report,” he says.
Source: REALTOR® Magazine Online
© 2006 FLORIDA ASSOCIATION OF REALTORS®
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