The FCRA requires you as the potential property manager/landlord to give an adverse action notice to each consumer whose credit report was used to deny their lease application. The consumer is also then entitled by the law to a free copy of their credit report.
What is an adverse action notice?
An adverse action notice informs an applicant that they have been denied credit, employment, insurance, or other benefits based on information in a credit report. The notice should indicate which credit reporting agency was used, and how to contact them.
All consumers are entitled to a free copy of their credit report if:
- They were denied or were notified of an adverse action related to credit, employment, insurance, a government license, or other government granted benefit within the last 60 days and a credit report was used in the decision process.
- They were denied a house or apartment rental or were required to pay a higher deposit than normally required within the last 60 days and a credit report was used in the decision process
- They certify that they are unemployed and intend to apply for employment within the next 60 days.
- They certify that they are a recipient of public welfare assistance.
- They certify that they have reason to believe their credit report contains inaccurate information due to fraud.
StarPoint Tenant Screening gives you the ability to print adverse action notices with each credit report. The notices allow the property manager/landlord to check off the reason for the denial. The letter also informs the consumer that they can contact StarPoint for a free copy of their credit report.