Can free background check website be used instead of legitmiate credit check for rental denial?
Allen asked:
Potential landlord is using some background check website, getting anything from 20% to 60% liklihood that each of 16 negative results actually applies to the applicant, using name only, not cross refferrencing with soc sec # or DOB, or anything else, and basing decision to rent or not to rent, or to double deposit, etc., on this websites results instead of using the 3 major credit reporting agency results with confirmed identification. 16 false results came back. Is this LEGAL?! It’s OBVIOUSLY stupid, but LEGAL?? % likelihood of accuracy is based solely on statistical data regarding how common the name is, common names being assigned a lower % liklihood of applying to the individual being checked out. Anyone basing business decisions on THIS sort of data is an idiot, but I need sources for legal info on what a landlord can or cannot use to determine eligability for tanancy. PLEASE site your sources for any answers provided, and thanks in advance for the help.
As for any action taken, such as denial for credit or rental, the business making the decision to do so faces some legal requirements.
1:They must notify the consumer when an adverse action is taken on the basis of such reports.
2:Users must identify the company that provided the report, so that the accuracy and completeness of the report may be verified or contested by the consumer.
Section 603(f) of the FCRA would certainly apply to this website company.
Based on this law, it looks to me like she has the right to write them a demand for any information being reported in her name, and furthermore has the right to dispute any invalid information being provided about her. The question at hand is going to be about loopholes, considering this X% liklihood that this information pertains to the Jane Doe being reviewed.
So far Nojam75 is the only one who has provided ANY source info, and thanks much for doing so… It was very helpful in my research of the matter. Looking forward to anyone else who would like to post something FACTUAL with source info for me to review and confirm their information. If you’re not going to post source info so I can check your facts, please don’t bother posting your “guesses” and “opinions”. I’m looking for FACTS.
Lastly, this is a complex manager, not a private individual, although the owner is being consulted in the decision.
Beverly
Potential landlord is using some background check website, getting anything from 20% to 60% liklihood that each of 16 negative results actually applies to the applicant, using name only, not cross refferrencing with soc sec # or DOB, or anything else, and basing decision to rent or not to rent, or to double deposit, etc., on this websites results instead of using the 3 major credit reporting agency results with confirmed identification. 16 false results came back. Is this LEGAL?! It’s OBVIOUSLY stupid, but LEGAL?? % likelihood of accuracy is based solely on statistical data regarding how common the name is, common names being assigned a lower % liklihood of applying to the individual being checked out. Anyone basing business decisions on THIS sort of data is an idiot, but I need sources for legal info on what a landlord can or cannot use to determine eligability for tanancy. PLEASE site your sources for any answers provided, and thanks in advance for the help.
As for any action taken, such as denial for credit or rental, the business making the decision to do so faces some legal requirements.
1:They must notify the consumer when an adverse action is taken on the basis of such reports.
2:Users must identify the company that provided the report, so that the accuracy and completeness of the report may be verified or contested by the consumer.
Section 603(f) of the FCRA would certainly apply to this website company.
Based on this law, it looks to me like she has the right to write them a demand for any information being reported in her name, and furthermore has the right to dispute any invalid information being provided about her. The question at hand is going to be about loopholes, considering this X% liklihood that this information pertains to the Jane Doe being reviewed.
So far Nojam75 is the only one who has provided ANY source info, and thanks much for doing so… It was very helpful in my research of the matter. Looking forward to anyone else who would like to post something FACTUAL with source info for me to review and confirm their information. If you’re not going to post source info so I can check your facts, please don’t bother posting your “guesses” and “opinions”. I’m looking for FACTS.
Lastly, this is a complex manager, not a private individual, although the owner is being consulted in the decision.
Beverly
June 3rd, 2009 at 8:27 am
Marian
They don’t have to rent the apartment to you, they own it. It doesn’t seem like they are discriminating against you because of anything specific, but that is how they determined they are going to rent out there place. Dumb, ignorant, but probably not illegal.
June 3rd, 2009 at 3:29 pm
Sarah
this might shock you but I have studied
intently the 3 bureaus that you infer offer
a “better” response or # in a credit report.
ALL 3 of those agencies violate many
federal laws and, knowing how powerful
they are TODAY–they flaunt their
disregard of the law.
Thus, there is no reputable, legitimate
org that does credit checks that makes
a bit of sense.
I know of few apt complexes that bother
investigating these anymore; esp
because yesterday does not insure
tomorrow nor the opposite.
so, I am a dissenter to your
idea.
and, any landlord may make any
type of decision he chooses as long
as he does not overtly violate HUD
laws.
June 7th, 2009 at 12:14 am
Beatrice
I agree that that’s a stupid way to conduct business, but i doubt it’s illeagal. I wouldn’t rent from somebody like that, because if he doesn’t wanna spend the money for a proper background check, he obviously is tight fisted. I also would worry about what else he wouldn’t pay for.
June 10th, 2009 at 10:16 am
Kim
I’m not aware of any laws dictating what information a landlord can consider when reviewing rentals. Generally, a landlord can use any criteria they want as long as it is uniformly applied and not intended to discriminate against a protected class. Obviously, landlords cannot discriminate against protected classes unless they are otherwise exempt from fair housing laws.
Also, your state’s landlord tenant law may require landlords to specifically state why an applicant was denied.
June 13th, 2009 at 3:24 am
Edna
Hmm… A private landlord (an individual) is only responsible not to discriminate based on race, etc, etc.
You are fortunate that they are sharing any information about their credit checking policy at all. I always tell my turn – downs that I found an applicant with a better history, and leave it at that.
If the purpose of your inquiry is to sue the potential landlord for violations of civil rights, then an attorney is the best source of info.
Best of luck!
June 14th, 2009 at 8:28 pm
Cecil
The beauty of it is, a landlord can use whatever means they want to determine who they will rent to. There are no “laws” that tell them what programs to use. I agree, the website you discuss leaves a lot of room for the imagination….I use only legitimate sites, that pull from all 3 bureaus to screen my applicants….