Landlords and a Consumer Report

[Sandy Glover]

A landlord my use a consumer report to determine if an applicant is qualified to rent from them, if fact, this is he best method as long as the rules of he Fair Credit Reporting Act (FCRA) are complied with. The FCRA is a federal legislation enacted in 1970 and enforced by the Federal Trade Commission to promote the fairness and accuracy of background checks as well as protect the privacy and civil rights of all parties. What is a consumer report? A consumer report is a detailed analysis of the applicants ability to handle credit, his criminal history, civil record, and general reputation-facts you need to know in order to make an informed rental decision. In order to be protected by the FCRA the consumer report should be prepared and complied by consumer reporting agency.

What does that mean? Federal law clearly states the applicant's rights which the consumer reporting agency is familiar. What are the rights? The applicant has the right to sign a consent form allowing a credit and criminal history screening to be run. In addition the applicant must receive a letter of adverse action should the landlord decide not to rent based on the results of the background screening, and the applicant must be provided with a Summary of Rights. 

Why is this important?  The answer if two fold really: (1) A detailed consumer report takes a certain expertise and successor and (2) in today's litigious society it only makes sense to have such and important task completed by professionals. 

For more information on the FCRA log on to www.ftc.gov or contact a consumer reporting agency like All American Tenants.