A consumer report is an umbrella term encompassing various types of data used to evaluate a person's background, including credit reports, criminal history, and eviction records. Landlords use these reports to form a comprehensive picture of an applicant's potential behavior and reliability. The information gathered must be handled in accordance with the Fair Credit Reporting Act (FCRA), which governs how consumer information is obtained, stored, and disclosed to applicants.
How It Applies to Florida Landlords
In Florida, when a landlord denies an applicant based on information found in a consumer report, they must provide the applicant with an 'adverse action' notice. This notice explains why they were rejected and provides the contact information for the credit bureau that supplied the report. Utilizing consumer reports is a best practice for risk mitigation, but landlords must ensure their screening criteria are applied consistently to all applicants to avoid violating Fair Housing laws.
Key Takeaways
- Includes credit, criminal, and eviction data.
- Subject to Fair Credit Reporting Act (FCRA) rules.
- Adverse action notices are required if a tenant is rejected.
- Must be applied consistently to avoid discrimination claims.