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The FCRA and Unlawful Discrimination: A Possible Foreshadowing of FTC Enforcement Priorities

The Federal Trade Commission (“FTC”) proposed $4.25 million settlement with AppFolio, Inc. (“AppFolio”), a California-based company that provides “screening reports” to property management companies regarding potential tenants’ rental, credit, and criminal histories. While the settlement bears a hefty price tag, it was Commissioner Rohit Chopra’s dissenting statement that caught CPW’s attention as it directly raised the question of whether aggregated violations of the Fair Credit Reporting Act (“FCRA”) may constitute unlawful discrimination.  With anticipated changes to administrations and enforcement priorities, Commissioner Chopra’s dissenting opinion may foreshadow a future enforcement priority for the FTC:  FCRA claims against tenant screening companies that report consumer financial and/or rental histories.

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Posted Under: Tenant Screening

Post By Ken Shafton (848 Posts)