Fair Credit Reporting Act

Safeguarding your applicant’s identity is a top priority here at LeaseRunner. That’s why we designed our screening process to safeguard your potential tenant’s private personal information using secure SSL-encrypted links when they fill out their rental application and screening reports.

LeaseRunner is a reseller of credit, criminal, and eviction reports. We obtain credit reports from Experian, one of the three major credit bureaus, and criminal and eviction information from CIC Reports. LeaseRunner does not collect, store, or house consumer credit information. LeaseRunner passes the consumer’s personal identifying information to Experian so Experian can validate their request to release a credit report through our screening process. As governed by Experian, LeaseRunner only makes the credit reports available to view in the designated landlord account for 30 days. LeaseRunner automatically provides a copy of the credit report to the applicant who released it. LeaseRunner provides a means for consumers to dispute items on their credit file by using the dispute process outlined by Experian.

While LeaseRunner follows processes that are FCRA compliant for tenant screening purposes, it is important to TAKE NOTICE of your own responsibilities as the property manager. More specifically, you only use our screening reports for the permissible purpose of tenant screening. Here is an excerpt from our “terms and conditions” agreement required to sign up for an account with us. The clause reads as follows: “Permissible Purpose and Specified Use. You agree that your use of the Screening Services complies with the Fair Credit Reporting Act, 15 U.S.C. et seq., as amended (“FCRA”). You agree that your permissible purpose and specific use for the Screening Services under the FCRA is the following: legitimate business need - renting/leasing a property. Furthermore, you agree that you shall not request or use Screening Services for any other purposes, including without limitation, any purpose prohibited by law.”

Did you know that in the FCRA rules, you must have a permissible purpose for obtaining a credit report on someone? For example, permissible purposes (under the FCRA law) for obtaining a credit report include employment, insurance, and tenant screening. As a Property Manager, it is your responsibility to use the provided information in tenant screening reports only for making a decision on whether to rent to your prospective renter. Any other use of such information is prohibited. The reason we are sharing this information is because we want you to know that The Fair Credit Reporting Act restricts who can see a consumer's credit file and for what purpose.

An Adverse Action Notice is a formal communication required by the FCRA when you decide to deny a rental application based, in whole or in part, on information obtained from a consumer report. This ensures transparency and provides applicants with the opportunity to review and correct any inaccuracies in their reports.

When Is an Adverse Action Notice Required?

If you decline a rental applicant after reviewing their credit, criminal, or eviction reports, you're obligated to provide an Adverse Action Notice, even if the decision isn't solely based on these reports.

Key Components of an Adverse Action Notice

To comply with the FCRA, your Adverse Action Notice should include:

• Contact Information of the Consumer Reporting Agency: Name, address, and phone number of the agency that provided the report (e.g., LeaseRunner).
• Statement of Agency Non-Involvement: Clarify that the agency did not make the adverse decision and cannot provide specific reasons for it.
• Applicant Rights: Inform the applicant of their right to obtain a free copy of the report within 60 days and their right to dispute any inaccuracies.
• Credit Score Details (if applicable): If a credit score influenced your decision, include the score, its range, factors affecting the score, the date it was created, and the name of the entity that provided it.

Sample Adverse Action Letter

For your convenience, LeaseRunner provides a sample Adverse Action Letter that you can customize to meet your needs. The sample letter on our website is provided “as-is” and may not meet your needs. Please consult a licensed attorney in your state before using the sample letter to ensure compliance with local laws.