Property Management – Northridge

In either case, it raises the question of compliance with the laws regarding the usage of consumer credit report information. The usage of this information is governed by both California State Law and Federal Law.

While credit reports can legitimately be used to screen tenants, the use of consumer credit reports brings into play specific legal duties which govern their use.  Generally, whenever an “adverse action” is taken against a prospective tenant based in whole or in part on information contained in a consumer credit report, an adverse action notice must be given to the prospective tenant under both Federal and California State Law.  Federal law permits such a notification to be other than in writing, California law requires a written statement. [15 United States Code (U.S.C.) §1681m; California Civil Code § 1785.20]