What is FCRA (Fair Credit Reporting Act)?
The short answer
The Fair Credit Reporting Act (FCRA) is the U.S. federal law governing how consumer-report information — including tenant-screening reports with credit, criminal, and eviction history — is collected and used. For landlords it requires a permissible purpose and applicant consent to pull a report, and an 'adverse action' notice if you deny, charge more, or require a co-signer based on it.
What does FCRA require of landlords?
Get the applicant's written authorization before screening, use the report only for the housing decision, and if you take adverse action based on the report, give the applicant an adverse-action notice naming the screening company and informing them of their right to a free copy and to dispute it.
What is an adverse action notice?
A required disclosure given when a screening report contributes to denying an applicant, requiring a higher deposit, or requiring a guarantor. It must identify the consumer reporting agency and explain the applicant's dispute rights.
Pilot's tenant screening captures applicant consent and is built to support the FCRA adverse-action workflow.
FCRA (Fair Credit Reporting Act) — FAQ
Does FCRA apply to tenant screening?
Yes. Tenant-screening reports are consumer reports, so the FCRA's consent, permissible-purpose, and adverse-action rules apply to landlords and property managers.
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