3 ms·

The FCRA was designed to prevent this kind of thing. I wonder how they get around it?

by mrfusion 5y ago

g051051 5y ago
The FCRA defines how a credit report can be used, and rental decisions are considered a "permissible purpose".
- mrfusion 5y ago
  It does a whole lot more than that, brother. Consumers are allowed to correct inaccuracies for one. https://en.m.wikipedia.org/wiki/Fair_Credit_Reporting_Act https://en.m.wikipedia.org/wiki/Fair_Credit_Reporting_Act
  - g051051 5y ago
    I'm not sure what it has to do with your question, which was "The FCRA was designed to prevent this kind of thing. I wonder how they get around it?". Landlords have permissible purpose to check your credit report, so they aren't "getting around it".
LorenPechtel 5y ago
The problem is that these guys aren't covered by the FCRA. That's what we really need to do--extend the FCRA to cover all companies that gather external data to make decisions that are important to the person. Apply the same standards to all forms of background check--it waddles and quacks, the FCRA applies. I would also change the once-a-year check to say once-a-day. The fundamental problem is that the economics of all background-check companies are skewed towards false denials. The companies are happy to have dodged a bullet (bad renter, bad job applicant etc), nothing tells them that the bullet wasn't real. (And what of those of us whose backgrounds aren't exactly verifiable? I have more than 20 years of employment at companies that no longer exist.)
- astura 5y ago
  I have absolutely no idea where you got that idea - they are covered by the FCRA https://www.ftc.gov/business-guidance/blog/2016/11/screening-tenants-check-out-ftcs-new-guidance https://www.ftc.gov/business-guidance/blog/2016/11/screening... >Background screening reports provided by your company are covered by the FCRA if they’re used to help decide eligibility for housing and include information “bearing on a consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.”

The FCRA was designed to prevent this kind of thing. I wonder how they get around it?

g051051 5y ago

The FCRA defines how a credit report can be used, and rental decisions are considered a "permissible purpose".

mrfusion 5y ago
It does a whole lot more than that, brother. Consumers are allowed to correct inaccuracies for one. https://en.m.wikipedia.org/wiki/Fair_Credit_Reporting_Act https://en.m.wikipedia.org/wiki/Fair_Credit_Reporting_Act
- g051051 5y ago
  I'm not sure what it has to do with your question, which was "The FCRA was designed to prevent this kind of thing. I wonder how they get around it?". Landlords have permissible purpose to check your credit report, so they aren't "getting around it".

LorenPechtel 5y ago

The problem is that these guys aren't covered by the FCRA. That's what we really need to do--extend the FCRA to cover all companies that gather external data to make decisions that are important to the person. Apply the same standards to all forms of background check--it waddles and quacks, the FCRA applies. I would also change the once-a-year check to say once-a-day. The fundamental problem is that the economics of all background-check companies are skewed towards false denials. The companies are happy to have dodged a bullet (bad renter, bad job applicant etc), nothing tells them that the bullet wasn't real. (And what of those of us whose backgrounds aren't exactly verifiable? I have more than 20 years of employment at companies that no longer exist.)

astura 5y ago
I have absolutely no idea where you got that idea - they are covered by the FCRA https://www.ftc.gov/business-guidance/blog/2016/11/screening-tenants-check-out-ftcs-new-guidance https://www.ftc.gov/business-guidance/blog/2016/11/screening... >Background screening reports provided by your company are covered by the FCRA if they’re used to help decide eligibility for housing and include information “bearing on a consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.”