Do You Provide a Rejection Letter for Declined Applicants?

[Brandon Sturgill]

Any opinions...this would be in the instance there are multiple applicants for a single property and only one is chosen...

[Steve Babiak]

Originally posted by @Michael Noto:

As far as a formal letter goes, the only time we issue a formal letter of denial is if the denial was credit based.

...

OK, this is a matter regarding the Fair Credit Reporting Act (FCRA). Because of that word "Credit" there, people think it only pertains to credit reports. But if you actually read the FCRA, it covers all third party sources of information, so if you get eviction or criminal reports from a third party rather than getting those from the courthouse yourself, then the FCRA applies and a letter complying with the provisions of the FCRA is in order.

Also, people think a letter is only required when they reject or decline somebody, but the FCRA requires that information be given to the applicant for any any adverse action. So those who need more info than they've asked of other applicants, those who require a co-signer / guarantor, those who require a bigger deposit - all fall into "adverse actions" ...