CFPB Reports Find Errors Common in Tenant Screening

Source: Consumer Financial Protection Bureau
Decided: November 15, 2022
Bottom line: Tenant screening reports are consumer reports under the FCRA. If one costs you an apartment, you have the right to know which company made it, get a copy, and dispute errors.

Background

Most landlords screen applicants by buying a tenant screening report, often paid for with the applicant’s application fee. These reports can combine credit information, eviction filings, criminal records, and a proprietary score or pass/fail recommendation. Tenant screening companies are consumer reporting agencies under the FCRA, so they must follow reasonable procedures to assure maximum possible accuracy, 15 U.S.C. § 1681e(b), and investigate disputes. Landlords who deny an application based on a report must send an adverse action notice identifying the company and explaining the right to a free copy and to dispute.

On November 15, 2022, the CFPB released two reports on the industry. They are research, not rules or enforcement actions, and they did not change anyone’s legal obligations.

What the reports found

The Tenant Background Checks Market Report drew on industry research, court cases, academic work, and CFPB market monitoring, focusing on 17 screening companies. Among its findings:

The CFPB found “no independent or publicly available evidence” that tenant screening reports reliably predict rental behavior, though most landlords use them.
Matching public records to the right person is difficult. The report cited a study of 3.6 million eviction court records finding that 22 percent of state eviction cases were ambiguous or false records.
Prior rental payment history, which would seem most relevant to a landlord, is rarely included; industry estimates put coverage at 1.7 to 2.3 percent of U.S. renters.
A reported 68 percent of renters pay application fees, yet applicants often have little visibility into what the report says before a decision.
Most screeners appear to rely on low-cost automated retrieval of court records, with manual verification, which can cost seven times as much, used mainly after a dispute.
Proprietary scores and pass/fail recommendations that hide the underlying data “can conceal data errors and may magnify the impact of erroneous or outdated information.”

The Consumer Snapshot analyzed complaints and CFPB-commissioned interviews and focus groups. It reported about 26,700 tenant screening complaints from January 2019 through September 2022, more than 17,200 of them about incorrect information. (The CFPB’s press release gave lower round figures for the same analysis: more than 24,000 complaints, including more than 16,000 about incorrect information.) Renters described records that belonged to someone else, information too old to report, and misleading eviction and criminal entries. Many said landlords did not tell them a report was used or how to dispute it, and that errors they corrected reappeared on later reports. The snapshot said the complaints and research “suggest that some tenant screening companies are not meeting the legal requirements under the FCRA” on accuracy.

Director Rohit Chopra said a report “riddled with errors” can “cause serious harm to a family seeking housing.” The FTC’s consumer protection director said the agency would keep working with the CFPB on the industry.

Our take

These reports match what renters tell us. A wrongly matched eviction or a dismissed charge reported without its outcome can cost someone an apartment in a tight market, and the renter may never learn why. The point that pass/fail scores hide the data behind them is especially important, because a landlord who sees only “decline” has no reason to question the underlying record.

The reports have limits. They describe complaints and market patterns, not findings that any particular company broke the law, and complaint data reflects people who had problems. Screening companies also face real difficulty matching court records that often lack full identifiers. But the FCRA places that burden on the companies selling the reports, not on renters.

The CFPB’s later guidance in this area, including 2024 advisory opinions on background screening, was withdrawn in May 2025. The FCRA’s accuracy, dispute, and adverse action requirements remain, and the FTC has also brought tenant screening cases.

What it means if your report is wrong

If you are denied housing, ask the landlord for the adverse action notice and the name of the screening company. Request your file from that company; it is free if you ask within 60 days of the denial. Dispute any eviction, criminal record, or debt that is not yours, is outdated, or omits a dismissal or satisfaction, and attach court records if you have them. Keep the denial, the report, and your dispute. A free case review can assess whether the screening company or landlord violated the FCRA, and there is no fee unless we win.

Sources

Primary

Commentary we reviewed

Commentary: CFPB reports highlight regulatory concerns with tenant background checks (Cooley)

Updated November 1, 2026. "Our take" is the firm's opinion. This page is general information, not legal advice, and later decisions may change the law.