H.R. 4369: End Tenant Credit Screening Act

This bill, known as the "End Tenant Credit Screening Act," seeks to amend the Fair Credit Reporting Act in order to prohibit housing providers from using consumer credit checks when evaluating potential tenants. The motivation behind the bill is to prevent adverse rental housing decisions based solely on a prospective or current tenant's credit history.

Key Provisions of the Bill

• Definition of Terms:
  • Tenant screening purposes: This refers to various uses of consumer reports to assess individuals for rental housing, including decisions about approving rental applications, determining security deposits, or deciding whether to retain a tenant.
  • Housing provider: This is defined as anyone who leases residential property to individuals.
• Prohibition on Credit Checks:
  • This ban is absolute, meaning it applies regardless of whether an individual tenant consents to the use of their credit report.
• Exception for Reconsideration:
  • The only exception to this rule relates to cases where a tenant's application has been denied, and the housing provider is considering the tenant's application again based on new information. In such cases, a credit report may be used only during this reconsideration process.

Implications of the Bill

• This legislation aims to eliminate barriers for potential tenants who may have poor credit, thereby promoting fairness in the rental market.
• Housing providers will need to find alternative methods for evaluating a tenant's suitability without relying on credit reports.
• The impact on tenant screening practices could lead to broader access to rental housing for individuals who, although they may have low credit scores, could still be responsible and reliable tenants.

Compliance Requirements

If enacted, housing providers will be required to adjust their tenant screening procedures to comply with the new regulations, ensuring that they no longer consider creditworthiness in their rental decisions. This may include implementing new evaluation methods that focus on other criteria, such as income verification, rental history, or personal references.

Relevant Companies

• None found