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Declined tenants ask for Quick Check reports - Landlord Forum thread 346729

Declined tenants ask for Quick Check reports by Keith on July 24, 2016 @17:10

                              
Hi everyone - A prospective tenant couple in Texas made application for tenancy in one of my properties and was declined. They've now asked for copies of the Quick Check reports I ran. The denial letter I sent did not indicate that the reports were the reason for denial, but rather the "Other" category which I went on to explain.

My question: Is there any problem with providing them copies of the credit summary and national criminal reports?
Thanks for the help and advice.
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Re: Declined tenants ask for Quick Check reports by Anonymous on July 24, 2016 @22:48 [ Reply ]
If you denied them based on the credit report you pulled, then your denial letter should have offered them a free credit report from the credit reporting agency you used, Experian, Transunion, etc. There is very specific wording that must be used in that denial letter. But since the denial was not based on credit then they are not entitled to copies of the reports, and certainly not from you. This is my understanding.
Re: Declined tenants ask for Quick Check reports by Anonymous on July 24, 2016 @23:13 [ Reply ]
What was the "other" category that you said you explained?
Re: Declined tenants ask for Quick Check reports by Joel on July 25, 2016 @22:50 [ Reply ]
Yes,there is a problem,
as an "End User" of confidential consumer reports, you are not allowed to share the reports with anyone else, not even the applicants,, hence Adverse Action Letter IF denied for credit reasons. Your sign-up agreement states this.
You don't want to violate credit bureau policies or FCRA laws.

Denial Letter if reasons other than credit.
Simple as that.
Re: Declined tenants ask for Quick Check reports by Anonymous on July 26, 2016 @14:58 [ Reply ]
Tell those tenants to go pound sand.
Re: Declined tenants ask for Quick Check reports by Anonymous on July 26, 2016 @16:01 [ Reply ]
this has come up a couple of times over many years of doing this. the short reply to your declined prospects is that your agreement with the LL information service provider prohibits your re-use or diseminating the information contained in the reports (...which it PROBABLY DOES) and the fair credit reporting laws are very clear on this subject. Don't forget,...that report can be traced back TO YOU,...and after it leaves your hands,....you have no control over it.
""privacy, authorization and security issues,... do not permit you to accommodate their request"".
Re: Declined tenants ask for Quick Check reports by MrDan (GA) on July 27, 2016 @15:52 [ Reply ]
Not sure if you are aware of the law in Texas when screening applicants.

"Landlords are now required to provide applicants with written notice of their eligibility criteria so applicants don’t pay money to be automatically denied. If the landlord does not provide or post the eligibility criteria (e.g., income, criminal history), and the landlord rejects the applicant, the landlord must return everything the applicant gave them including the application fee and deposit. Section 92.3515, Property Code.

Since you are not declining the applicant due to any credit issue, there is no need or requirement to provide any additional information. But you did say you declined the applicant for "other reasons". You could release that information as to why they were declined.
It's just natural to ask why a person was declined to rent. The real issue that many landlords face is that if they fail to disclose the reason used to declined the applicant, the applicant may feel it was because of a discriminatory reason, which could result in Fair Housing testers investigating the landlord for violations. On the other hand, disclosing the "other reason" would provide that no discriminatory reason exist in which to file a complaint or charge.

Whether you decide to provide an applicant with an explanation as to why they were denied rental or not, all landlords and property managers should memorialize the reason that they rejected the applicant in writing for their own records. The landlord should retain the paperwork for at least three years as this is the statute of limitations for the majority of most fair housing claims.

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