FTC: Texas company to pay $3 million for inaccurate tenant screening reports

By Marian Johns | Oct 23, 2018

WASHINGTON, D.C. — A Texas company has agreed to pay $3 million to resolve charges by the federal government that it did not meet accuracy requirements for tenant screening reports given to landlords and property managers resulting in false reports on potential renters. 

The Federal Trade Commission (FTC) alleges that RealPage Inc., used "broad criteria" to match applicants with criminal records and used limited filters with no procedures to assess the accuracy of its results in violation of the Fair Credit Reporting Act (FCRA). The improper methods resulted in screening reports that associated some potential renters with criminal records that did not belong to them who were then turned downed for housing and other opportunities, the FTC said. 

“You shouldn’t get turned down for an apartment because someone has the wrong information about you,” FTC Bureau of Consumer Protection director Andrew Smith said in a statement.  “This case shows that, especially with today’s tight rental market, we will hold tenant screening companies responsible for the accuracy of their reports.”

The proposed settlement also includes RealPage being required to ensure maximum possible accuracy in consumer reports and it is subject to compliance and reporting requirements, according to the FTC. 

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