What should tenant background screening companies keep in mind?
Even if you don’t think of your company as a consumer reporting agency, it may be one if it provides information about people to landlords for use in housing decisions. Background screening reports provided by your company are covered by the FCRA if they’re used to help decide eligibility for housing and include information “bearing on a consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.”
If your tenant background screening company is covered by the FCRA, then you have four main requirements:
- Follow reasonable procedures to ensure accuracy.
- Get certifications from your clients.
- Provide your clients with information about the FCRA.
- Honor the rights of applicants and tenants.
The new guidance includes details about each of these requirements, as well as a handy chart of key FCRA provisions.
Whether you’re a landlord or a screening company, when you’re done using a consumer report, you must securely dispose of it.