Background screening reports used by landlords often contain outdated or inaccurate information that can ruin a renter's housing search. Eviction actions that were dismissed, sealed, or resulted in a ruling for the tenant may still show up as active evictions. Additionally, credit history errors or mixed records belonging to another individual can lead to an immediate denial.
The Rise of Automated Tenant Screening
Modern property management relies heavily on automated background checks. These systems scrape public court records and credit databases to generate tenant risk scores. Unfortunately, many screening companies do not verify the records they collect. This results in consumers being denied housing based on records belonging to individuals with similar names, or evictions that were successfully resolved years ago.
Common Errors in Rental Reports
The most frequent tenant screening errors include outdated court records, where a dismissed eviction is reported as an active judgment. Screening companies also frequently report duplicate listings of the same case, making the applicant's record appear far worse than it is. Mixed files are another major issue, where a landlord receives a report containing criminal history or bad credit belonging to an entirely different person.
How the FCRA Protects Renters
Under the Fair Credit Reporting Act (FCRA), tenant screening companies are classified as consumer reporting agencies. This means they must follow reasonable procedures to ensure the maximum possible accuracy of the reports they produce. If they fail to do so, they can be held liable. The law also gives you the right to receive a copy of the report used to deny your application, as well as the name of the screening company.
Steps to Take After a Denial
If you are denied housing due to a screening report, you should immediately request a copy of the report from the landlord. Review it carefully for any inaccuracies. If you locate an error, file a formal dispute in writing with the screening agency, providing supporting documents such as court orders or proof of payment. If the agency fails to correct the error within 30 days, you may have grounds to pursue legal action.
Horowitz Law PLLC represents consumers nationwide who have been wrongfully denied housing due to tenant screening errors. Contact our firm for a free consultation.