March 31, 2022

FCRA Adverse Action Letter

Suggestions on how to handle denial of housing based in whole or in part on the information contained in Tenant Screening Report from Inquisitores Company:

  1. Tenant Screening Reports are “Consumer Reports” for purposes of the Fair Credit Reporting Act, 15 USC §1681a (“FCRA”).

  2. Landlords who do not follow the FCRA rules, their State Law, and the Local Law, if any, may be liable for Statutory Damages and Attorneys’ Fees and Costs.

  3. Landlords denying housing to an applicant based in whole or in part on the information contained in the Tenant Screening Report may do the following to limit their liability:

    1. Do NOT provide a copy of the Tenant Screening Report to an applicant. If you do provide a copy of the Tenant Screening Report to an applicant, you instantly and automatically open yourself to liability. We strongly suggest that you issue instead a FCRA Adverse Action Letter.

    2. The FCRA Adverse Action Letter should be sent within 5 business days to an applicant whose rental application you are denying based in whole or in part on the information contained in the Tenant Screening Report. This is a link to MS Word: Sample FCRA Adverse Action Letter.

    3. An applicant will be able to receive a free copy of his/her Tenant Screening Report from Inquisitores Company by contacting Inquisitores directly within 60 days of receipt of your FCRA Adverse Action Letter.

    4. If the applicant disputes accuracy of any information contained in the Tenant Screening Report, to ensure maximum possible accuracy, Inquisitores Company will conduct a reasonable investigation pursuant to 15 U.S. Code § 1681i.

This is not a legal advice, please consult an attorney.

Sample FCRA Adverse Action Letter (PDF)
Sample FCRA Adverse Action Letter (MS Word)