FTC And Consumer Financial Protection Bureau Cite FCRA Violations Against Rental Screening Company
The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) recently cited a rental screening company for violations of the Fair Credit Reporting Act (FCRA). The company is alleged to have failed to ensure the accuracy of rental background checks that were provided to landlords. The rental screening company was also alleged to have kept the identity of third-party screeners from renters. These third parties allegedly reported inaccurate information that harmed the reputation of the renters. The FTC and CFPB are asking a federal court to fine the company $15 million for violations of the FCRA.
The complaint filed by the FTC and CFPB alleged that the rental screening company failed to provide up-to-date reports concerning the credit health of consumers. The consumer reporting agency did not use recent public records which caused it to miss dismissed evictions against renters. It also provided numerous entries based on a single eviction and included records that had been sealed.
The rental screening company was also accused of refusing to disclose who provided the inaccurate information. Instead, the company claimed that criminal or eviction records came from jurisdictions where the proceedings occurred. If that were the case, the impacted individual would have had to contact third-party vendors to correct the inaccurate information. However, the company did not share this information with the renters.
Your rights under the FCRA
The Fair Credit Reporting Act protects consumers from unfair credit reporting services. In the case mentioned above, the consumer reporting agency failed to provide up-to-date information on the renters’ credit reports. They also failed to disclose information that they are required by law to disclose such as what third party is making a claim against the renter.
The FCRA protects information collected by consumer reporting agencies like credit bureaus, medical information companies, and tenant screening companies. Under the FCRA, information in a consumer report cannot be provided to anyone who does not have a purpose specified in the Act. Companies that provide information to consumer reporting agencies have specific legal obligations to consumers. This includes the duty to investigate disputed information. By restricting consumers’ access, the abovementioned rental screening company violated the provisions of the FCRA. They also presented out-of-date information on consumers that harmed their reputations.
According to the FCRA, you have a right to know about the information that a credit reporting agency is maintaining on your credit report. This includes your credit score and related information. You also have a right to any information that is supplied by the credit reporting agency. For example, if your application for a credit card is denied, you would have a right to determine which credit bureau reported the information.
Talk to a Columbus, OH FCRA Attorney Today
The Columbus consumer law attorneys at Kohl & Cook Law Firm, LLC can help you file a lawsuit against a company that reports inaccurate information on your credit report. Call today to schedule an appointment and learn more about how we can help.