Fair Credit Reporting

By Joy Jacob · Updated 2026-07-09 · 3 min read

The Federal Trade Commission (FTC) recently announced that RentGrow, a tenant screening company, will pay $2.25 million to settle allegations that it violated the Fair Credit Reporting Act (FCRA) and the FTC Act. According to the FTC press release, the company failed to use reasonable procedures to ensure the accuracy of its reports.

Understanding the Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) is a federal law that regulates the collection, use, and disclosure of consumer credit information. It applies to consumer reporting agencies, such as credit bureaus and tenant screening companies, that provide consumer reports to landlords, employers, and other third parties. The FCRA requires these agencies to follow certain procedures to ensure the accuracy and fairness of the information they provide. For example, if a consumer reporting agency is providing a report on a potential tenant, it must verify the accuracy of the information in the report, such as the tenant's credit history and rental payment history.

A key aspect of the FCRA is the requirement that consumer reporting agencies use reasonable procedures to ensure the accuracy of their reports. This means that they must take steps to verify the information they collect and report, and must also have procedures in place to handle disputes and correct errors. If a consumer reporting agency fails to follow these procedures, it may be in violation of the FCRA. Many people are unaware of the importance of the FCRA in protecting their personal and financial information, and the consequences of non-compliance can be severe.

What this means for you

The FCRA has significant implications for consumers, particularly in the context of tenant screening and employment background checks. Here are a few key takeaways:

• Accuracy matters: The FCRA requires consumer reporting agencies to use reasonable procedures to ensure the accuracy of their reports. This means that if you're applying for a rental property or a job, you have the right to expect that the information in your consumer report is accurate and up-to-date. One option is to review your report carefully and dispute any errors you find.
• Disclosure is key: The FCRA also requires consumer reporting agencies to disclose the sources of their information. This means that if you're denied a rental property or a job based on information in your consumer report, you have the right to know where that information came from. Many people find it helpful to ask for this information and to review the report carefully to ensure that it is accurate.
• You have rights: The FCRA gives you the right to access your consumer report and to dispute any errors or inaccuracies. You also have the right to opt out of certain types of reporting, such as prescreened credit offers. One way to exercise these rights is to contact the consumer reporting agency directly and ask about their procedures for handling disputes and corrections.
• Be vigilant: Finally, it's essential to be vigilant about your personal and financial information. This means monitoring your credit report and consumer report regularly, and taking steps to protect yourself from identity theft and other forms of fraud. Many people find it helpful to set up alerts and to review their reports regularly to catch any errors or suspicious activity.

In general, the FCRA is an important law that protects consumers from inaccurate or unfair credit reporting. By understanding your rights under the FCRA, you can take steps to protect yourself and ensure that your personal and financial information is handled fairly and accurately. The FTC's enforcement of the FCRA is a crucial part of this process, and helps to ensure that consumer reporting agencies are held accountable for their actions.