Paying Rent is Hard Enough Without Discrimination; U.S. Government Issues Guidance

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The Consumer Financial Protection Bureau issued new guidance last week aimed at one of the most problematic practices leading to widespread errors in tenant background checks, the subject of a joint investigation by The Markup and The New York Times last year. Companies that match potential renters to public records, the agency said, should ensure that a renter’s name is not the only factor used to determine identity. Other information, such as a date of birth, Social Security number, or address should be used to corroborate the records, the CFPB advised. The tenant screening industry provides landlords with background checks on potential tenants—often a major factor in whether a prospective renter gets a home. The agency cited our findings, which revealed that these reports often contain inaccuracies, preventing those affected from securing housing or a job.