[RPPTL LandTen] A burning question regarding the Dodd-Frank Act and July 11

[Harry Heist]

There has been some discussion amongst some screening companies regarding
the law that now requires the disclosure of the credit score to an applicant
who is turned down or an "adverse action " is taken against beginning July
11, 2011.  An attorney in a very large screening company feels that the
landlord/tenant relationship is not a "credit" transaction therefore we do
not have to provide the score. 

 

Any input?

 

Thanks,

 

Harry Heist

 

 

This is from the California Apt Association.

 

The federal Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010 requires users of consumer reports, beginning on July 21, 2011, to also
provide credit scores to applicants if the score was used in taking adverse
action. 

 

Currently the Fair Credit Reporting Act requires that an adverse action
notice only include notice of the applicant's right to receive a free copy
of his or her consumer report. The Dodd-Frank Act amended that to stipulate
the credit score itself must be included. 

 

On March 1, 2011, the Board of Governors of the Federal Reserve System
issued proposed regulations which contain sample notices to comply with this
requirement. Once these regulations are finalized, and well in advance of
the July 21 deadline, the California Apartment Association (CAA) will
provide updated forms (Notice of Denial, Notice of Conditional Acceptance)
and detailed instructions to help CAA members comply with the new
requirements. 

 

Adverse action notices are provided to rental applicants who, after the
tenant screening process, are denied or conditionally accepted (i.e.,
subject to a cosigner or higher deposit) based on information in a consumer
report. Currently the notice must include: 

 

The name, address, and telephone number of the agency that supplied the
consumer report, including a toll-free number if the agency maintains files
nationwide. 

.A statement that the agency that provided the report did not make the
decision to take the adverse action and cannot give the specific reasons for
it. 

A notice of the individual's right to dispute the accuracy or completeness
of any information furnished by the agency and of the individual's right to
request a free copy of their credit report from the reporting agency within
60 days of the notice of adverse action.

 

 

 

 

Section 1100F of the Dodd-Frank Wall Street Reform and Consumer Protection

Act (Dodd-Frank Act) amends FCRA to require that its adverse action and risk

based pricing notices include:

1. A numerical credit score used in making the credit decision;

2. The range of possible scores under the model used;

 

 

LAW OFFICES OF 
HEIST, WEISSE, DAVIS & WOLK P.A.
PH: 1 800 253 8428
FAX: 1 800 367 9038
"Serving the Property Management Professional"
Website:  www.evict.com <http://www.evict.com/>  
Email: harry at evict.com

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