FTC: Rental info providers may be subject to Fair Credit Reporting Act

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Data brokers who provide online information to landlords about tenants’ rental histories may be subject to the requirements of the Fair Credit Reporting Act, the Federal Trade Commission has warned.

In letters issued to the operators of six websites, FTC officials warned that distributing information about individuals’ rental histories for landlords to use to screen rental applicants would make the website operators “credit reporting agencies” under the FCRA. The letter stated that while the FTC has not yet evaluated the companies’ practices to determine whether they are in compliance with the law, it warned that it could take action against the website operators if they are found to be in violation.

The letter warned that if the companies are deemed credit reporting agencies under the FCRA, the law imposes a host of duties, including verifying that each landlord to whom tenant information is provided is in fact using the report for tenant screening and not for impermissible purposes, verifying the accuracy of the information provided, giving individuals whose information is disseminated the right to dispute the information and providing individuals with a free annual report.

The law also would require information providers to inform landlords that if they deny housing to anyone on the basis of the reports, they must provide the applicant with notice of that fact, along with information about the applicant’s right to receive a free copy of his or her report, and the applicant’s right to dispute information he or she believes to be inaccurate.