Fair Credit Reporting Act News
Failing to confirm data veracity in tenant screening reports, CoreLogic paid a $1.8 million penalty and risked legal action
Sunday, January 12, 2025 - A major participant in the tenant screening market CoreLogic came under fire from the Federal Trade Commission (FTC) in 2015. The problem is... Potentially dangerous mistakes resulted from the organization not adequately verifying the information it used to produce tenant screening reports. This meant the difference for tenants between being unfairly denied or granted housing. These mistakes were not only annoying; they had actual repercussions, particularly for those unfairly singled out for problems they had no bearing on. The aftermath resulted in a Fair Credit Reporting Act lawsuit and emphasized the need to correct credit report mistakes to guard consumers from such damage.
Finding CoreLogic in violation of federal rules led the FTC and CoreLogic to negotiate a settlement. The FTC's official press release states that the tenant screening division of the corporation neglected to guarantee the veracity of criminal and eviction records incorporated in its reports. This went against the Fair Credit Reporting Act (FCRA), which mandates that consumer reporting companies act reasonably to confirm the data they supply. The Consumer Financial Protection Bureau (CFPB) also emphasized how such errors may cause customers to be unfairly refused housing, typically without a clear mechanism for fixing these errors. These two government agencies stressed together how important correct reporting is in sectors that impact fundamental needs such as housing. The errors of CoreLogic had major consequences for renters, not only technical ones. Imagine applying for an apartment and being turned down because the background check erroneously marked you as a felon or highlighted an eviction never occurring. For many renters whose screening results were based on inaccurate or obsolete data, this is precisely the kind of situation that developed. Sometimes mistakes have been related to simple out-of-date data or mix-ups between people with similar names or data. Consumers had few means to fix issues, hence many of them were left in a situation whereby their only choice was to hope landlords would overlook the mistakes.
The $1.8 million penalty CoreLogic paid was a sobering reminder that businesses cannot cut corners in safeguarding consumer rights. The settlement also mandated that the business enhance its data verification systems thereby guaranteeing future FCRA compliance. The case was a small but important success for renters since it demonstrated that authorities are ready to intervene when businesses neglect their due care. For businesses all over the sector depending on customer data, this case acted as a wake-up call. It underlined the risks of automatic systems devoid of control and the authority of agencies like the FTC and CFPB in making companies answerable. For consumers, it served as a reminder of the need to keep an eye on your credit reports and tenant screening findings for mistakes as well as of your rights under legislation like the FCRA. Often without any justification, a mistake in a tenant screening report could mean the difference between securing a house and encountering rejection. By enforcing the law in this instance, the FTC made it abundantly clear: businesses managing private customer data have obligations--or else they risk repercussions.
