When a landlord pulls a prospective renter's credit report, the renter has certain rights in the event the landlord declines the application or makes additional requirements based on the credit report.
Credit Report
A credit report shows a prospective tenant's debts, credit limits and debt repayment history. Many landlords want to see prospective tenants' credit histories.
Fair Credit Reporting Act
The Fair Credit Reporting Act is a federal law that governs the way creditors report consumer debt and repayment. The law also gives individuals the right to receive notice if they are adversely affected by something on their credit reports.
Adverse Action
The law defines an "adverse action" on the part of the landlord to be anything that affects the prospective tenant negatively. Adverse actions can range from denying a tenant a lease to charging a larger security deposit.
Adverse Action Notice
If a landlord takes an adverse action against a prospective tenant that is in any way based on the tenant's credit report, the landlord must provide written notice explaining this to the tenant.
Free Credit Report
If a prospective tenant is notified that he was adversely affected as a result of data in his credit report, he has the right to request a free credit report from the credit reporting agency that furnished the landlord's report.
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