Fcra Compliance Tenant Screening

The fcra regulates employers that use background reports and the consumer reporting agencies cras aka background screening companies that provide the information.

Fcra compliance tenant screening.

The fcra applies anytime an employer obtains a background check for employment purposes from a third party. Permissible purpose an approved reason under the fcra to conduct a background investigation e g credit employment tenant screening insurance government license child support enforcement or court order. Be fair credit reporting act fcra compliant you need a permissible purpose. Myrental is best for budget conscious landlords.

Verified tenant a division of prehire screening services is a consumer reporting agency cra. If the rental applicant is denied this is the only tenant screening service that generates fair credit reporting act fcra compliant adverse action letters automatically. What is a consumer report. Verified tenant supplies consumer reports to its customers for tenant screening purposes.

They also are known as consumer reports. These tenant background checks can include a variety of information including rental and eviction history credit or criminal records. For example permissible purposes under the fcra law for obtaining a credit report include employment insurance and tenant screening. The fcra stands for the fair credit reporting act.

Starting at 19 99 myrental provides greater comprehensive reporting than rentprep or leaserunner. When your company orders a consumer report from verified tenant it is automatically subject to certain provisions of the fcra. Fcra compliance is designed to protect consumers. It is a government legislation enacted to promote the accuracy fairness and privacy of consumer information contained in the files of consumer reporting agencies.

These reports could include criminal history employment and education verifications motor vehicle reports health care sanctions and. Whether you re screening a tenant or hiring an employee an fcra compliant background check is a crucial aspect of your process. Unfortunately many people searching out fcra background check companies learned the hard way due to a complaint from a denied person. What is fcra compliance.

As a property manager it is your responsibility to use the provided information in tenant screening reports only for making a decision whether to rent to your prospective renter. Background screening reports are consumer reports under the fcra when they serve as a factor in determining a person s eligibility for housing employment credit insurance or other purposes and they include information bearing on a consumer s credit worthiness credit standing credit capacity character general reputation personal characteristics or mode of living. In order to be compliant the fcra requires that an employer meet the following. When you use consumer reports to make tenant decisions you must comply with the fair credit reporting act fcra.