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In February 2023, the FTC announced that it and the CFPB
are requesting comment on background screening issues affecting individuals who seek rental housing in the United States, including how the use of criminal and eviction records and algorithms affect tenant screening decisions and may be driving discriminatory outcomes.
This joint effort is “part of a whole-of-government effort to address” “background screening practices and their potential effect on people’s ability to obtain rental housing…” The CFPB also issued a blog, Tell us about your experiences with rental background checks and fees.
In the release, Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said that “[n]o one should be shut out of housing because of inaccurate or unfair background screening practices. We are proud to be part of a whole-of-government effort to ensure fairness and equity in the rental market, and we are looking forward to hearing from the public on this vital issue.” Rohit Chopra, Director of the CFPB, said that “[e]rror-ridden background checks are increasingly used by corporate landlords to deny housing to Americans. We will continue to work together to protect the integrity of our credit reporting system from sloppy background check companies.”
As part of the Request for Information, the FTC and CFPB are asking current tenants, prospective tenants, advocacy groups, commercial and individual landlords, property managers, background screening companies, other consumer reporting agencies, and others to weigh in on a wide array of issues that affect tenant screening such as:
- how criminal and eviction records are used by landlords and property managers in making housing decisions
- how potential inaccuracies in criminal and other records affect rental housing decisions;
- whether consumers are informed about the criteria used in tenant screening or notified about what information in their background check led to their rejection;
- how landlords and property managers are setting application and screening fees;
- how algorithms, automated decision-making, artificial intelligence, or similar technology are used in the tenant screening process; and
- whether there are ways to improve the current tenant screening process.
The CFPB blog, Tell us about your experiences with rental background checks and fees, was written by Lissan Anfune, Sophie Sahaf, and Irene Skricki. The blog discusses thousand of complaints, points the public to a video on background checks, and how the Bureau wants
to hear from renters, landlords, property managers, advocacy organizations, tenant screening companies, and researchers about tenant background checks. In particular, we’re seeking information about:
- Your experiences with tenant background checks, as a renter, landlord, or property manager;
- Transparency for landlords and renters about what information goes into background checks and where that information comes from, including for risk scores;
- Accuracy of information in background checks, particularly regarding criminal and eviction records;
- Whether and how renters know if they’ve been denied housing or charged more in rent because of a background check;
- Challenges renters face when trying to correct information in a tenant background check;
- Types of risk scores marketed to landlords, and what challenges they may present for renters and landlords
The CFPB noted that it is “working closely with other federal partners, including the Department of Housing and Urban Development, the Federal Housing Finance Agency, and Department of Agriculture to address problematic practices by tenant screening companies.”