Neighborhood Property Management would like to make you aware of these new State screening requirements. NPM is also a member of the California Apartment Association and utilizes all of the latest forms keeping up with the changing laws. These changes took effect July 21, 2011 – CAA has Updated Forms
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.
The California Apartment Association (CAA) has updated all the forms necessary to accurately comply with this new requirement. Those forms are:
3.1 – Notice of Denial to Rent
3.2 – Notice of Denial to Rent (Agencies Listed)
3.3 – Notice of Conditional Acceptance
3.4 – Notice of Denial of Application to be Guarantor
Each form also includes detailed instruction sheets.
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 an information furnished by the agency and of the individual’s right to request a free copy of the their credit report from the reporting agency within 60 days of the notice of adverse action.