Fair Credit Reporting Act Rules and Regulations
Since 1970, the Fair Credit Reporting Act (FCRA) has enacted strict guidelines for credit reporting agencies and credit report users. At first, its definition of someone who “has a legitimate business need for the [individual’s credit] information” was rather vague.
In 2004, Congress passed changes to the FCRA in an attempt to increase credit report accuracy and prevent identity theft. Subsequently, Credit Reporting Agencies (CRAs) tightened up their guidelines and restricted many individuals, including landlords, from obtaining credit information.
To qualify to receive credit reports, a rental property business must submit to an on-site inspection, hold a business license, have a publicly-listed business telephone number and a business checking account, and maintain a separate, secure business office.
If your business does not meet the above guidelines, it is still possible to screen tenants—you just won’t receive their actual credit scores. Instead, you will receive a Tenant Background Check Report. This exclusive report contains all the basic validations, like Social Security Number, Patriot Act, Liens, Judgments, Evictions, and Bankruptcies—and much more. Plus, you can have the peace of mind that comes with knowing your potential tenant meets your minimum credit requirements, based on information obtained from his credit file.
Even though CRAs tightened up regulations back in 2007, individual landlords or large-scale property managers alike can continue to count on E-Renter.com to stay in compliance with the FCRA. We keep up with changing laws and regulations, so you don’t have to!