What is required of landlords under the Fair Credit Reporting Act if they deny a tenant based on a credit report?

Under the Fair Credit Reporting Act (FCRA), if a landlord denies a tenant's application based on information provided in a credit report, they are required to inform the tenant about the denial and must also identify the reporting organization that provided the credit information. This requirement is in place to ensure transparency and give the tenant the opportunity to understand why their application was denied.

By notifying the tenant of the specific credit reporting agency that furnished the report, the landlord allows the tenant to directly contact that agency for more details, which can help the tenant address any inaccuracies or issues that may have influenced the decision. This requirement is a key component of the FCRA designed to protect consumers and ensure fairness in the rental application process.

While it could also be important to notify tenants in writing or provide them with a copy of their credit report, the primary requirement under the FCRA centers on informing them of the denial and the source of the report that contributed to that decision. Allowing tenants to appeal the decision is not a mandated requirement under the FCRA, although some landlords may choose to provide such an option as a courtesy.