Originally written by: Bill Bower, CIC President/Founder
Maybe their credit score didn’t meet your criteria or their monthly income was below your requirement. Whatever the reason was, did you make sure to send a proper adverse action letter or notice – because if not, you are violating your consumers rights under the Fair Credit Reporting Act. You need to know constitutes the need for an adverse action notice and what are the best ways to go about providing one or else you might end up with a very disgruntled consumer.
What is considered adverse action in rental transactions?
If your applicant falls under any of the considerations above, you are obligated by law to deliver the adverse action in writing. This includes if your decision was influenced in anyway by the tenant screening report.
What should this notice contain?
Contact information for the reporting agency which provided the report including the name, address, phone number and a toll free number if the reporting agency maintains files nationwide.
Don’t take chances – if you aren’t absolutely certain you are operating within the rights of your applicants, ask a tenant screening professional. Your screening company should be well versed in all aspects to protect your business and should have resources to expedite this process.
For more information: Using Consumer Reports: What Landlords Need to Know