WASHINGTON–The Federal Trade Commission and the Consumer Financial Protection Bureau (CFPB) are requesting comment on background screening issues affecting individuals who seek rental housing in the United States.
The government said this includes how the use of criminal and eviction records and algorithms affect tenant screening decisions and may be driving discriminatory outcomes.
“Renters are facing a range of challenges, from rising rents to a shortage of affordable rental housing. The FTC and CFPB are seeking information on background screening practices and their potential effect on people’s ability to obtain rental housing as part of a whole-of-government effort to address these issues,” the FTC and CFPB said.
The Questions Being Asked
As part of the Request for Information, the FTC and CFPB reported they are asking current tenants, prospective tenants, advocacy groups, commercial and individual landlords, property managers, background screening companies, other consumer reporting agencies, and others to weigh in on a wide array of issues that affect tenant screening such as:
- How criminal and eviction records are used by landlords and property managers in making housing decisions
- How potential inaccuracies in criminal and other records affect rental housing decisions
- Whether consumers are informed about the criteria used in tenant screening or notified about what information in their background check led to their rejection
- How landlords and property managers are setting application and screening fees
- How algorithms, automated decision-making, artificial intelligence, or similar technology are used in the tenant screening process
- Whether there are ways to improve the current tenant screening process
‘Working Closely’
The FTC and CFPB said they are working closely to identify practices that may unfairly prevent consumers from obtaining and retaining housing, and comments to the RFI will help inform enforcement and policy actions under each agency’s jurisdiction. The Fair Credit Reporting Act, which the FTC and CFPB both enforce, also imposes requirements on many aspects of the tenant screening process, the government said.
The public will have 90 days to submit comments at Regulations.gov. Once submitted, comments will be posted to Regulations.gov.
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