Being unfairly denied housing due to mistakes in a tenant screening report can have serious consequences on every aspect of your life. Unfortunately, errors frequently cause consumer struggles, even with federal and state regulations that should prevent them. If you have been denied housing due to errors on your SafeRent Tenant Screening, contact our attorneys today for a free case evaluation.
About SafeRent
SafeRent Solutions LLC is a service landlords, property managers, and real estate agents use to screen prospective tenants. The company and its software are often used to assess potential renters of apartments, condos, and townhomes. The Tenant Screenings combine reports from several data sources and use an algorithm to assign a quantitative value to an applicant’s potential.
Tenant Screening Reports
SafeRent Tenant Screening reports cover an applicant’s credit history, criminal record, evictions, income, identity, and more. With numerous data sources and an automated process collecting the information, the chances for mistakes are plentiful. The company employs an algorithm to analyze applicant data and assign a numerical score. This score supposedly correlates with an applicant’s likelihood of being a successful candidate. Similar to how a credit score reflects a consumer’s creditworthiness, a Rental Score reportedly indicates the potential for an applicant to pay rent on time, avoid causing property damage, and not require eviction.
Consumer Data
The following are some of the sources of data that SafeRent searches:
- Credit Report – SafeRent Solutions draws data from credit bureaus like Equifax, Experian, and TransUnion. SafeRent and the landlord must request and receive written permission to order and view your credit report.
- Eviction History – Rental history is part of the reporting results prepared by SafeRent. In North Carolina, eviction records are public records and may appear in credit reports.
- Financial Information – SafeRent evaluates an applicant’s financial profile, including income, monthly rent amount, payment history, and bankruptcies.
- Criminal Records – SafeRent relies on criminal record databases across multiple states, including information from the public sex offender registry. It offers the option of including a criminal record report that draws on data from a greater number of repositories. Unfortunately, more data does not always guarantee accurate results.
Privacy Issues
According to SafeRent’s privacy policy, the company can and does sell consumer information to third parties. Simply using the site implies consent to this policy. If not handled appropriately, this can put consumers’ personally identifiable information at risk.
Types of Errors
Applicants who are ultimately denied housing because of inaccurate, misleading, false, or otherwise impermissible information on a background check are eligible for compensation under state and federal law if conditions are met. There are many ways a background check can go wrong, especially with companies like SafeRent, which scrape thousands of databases for information that could be misattributed to you or outdated. Contact a dedicated consumer protection attorney to discuss your next steps if you notice an error.
The Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA) is an important U.S. law for consumers’ rights. Since its establishment in 1970, the FCRA has demanded consumer reporting agencies uphold accuracy, fairness, and privacy in managing their records. When your rights are violated, the consequences can be serious, potentially resulting in the loss of employment, housing, loans, or other necessities. Therefore, it is crucial to be informed about your rights and to consult a qualified consumer protection attorney if any violations occur.
Consumer Reporting Agencies
A Consumer Reporting Agency (CRA) is an organization that gathers information and supplies reports about individuals to other companies. These businesses utilize these reports to guide their decisions regarding credit, employment, housing rentals, insurance, and other related choices. As a designated CRA, a company is obligated under the Fair Credit Reporting Act to safeguard applicant data and provide accurate reports. Additionally, disputes must be investigated legally, and corrections should be made without unnecessary delays. Rental applicants have the right to file a lawsuit seeking error correction and compensation, and the law requires the wrongdoer to pay associated legal expenses.
SafeRent Lawsuits
In 2024, SafeRent settled a class-action lawsuit that accused the company of discriminatory practices. The suit alleges the product’s algorithms and assessment factors that unfairly impact Black and Hispanic applicants, which is a violation of the Fair Housing Act.
This is just one type of lawsuit that a background check company can face. With AI’s propensity for errors, SafeRent and other companies could face lawsuits under the Fair Credit Reporting Act.
Contact Our Experienced Consumer Lawyers
If your rental application has been denied based on errors in a SafeRent report, contact us for your FREE consultation today. An experienced attorney can help reduce the time it takes to resolve your case, alleviate the financial burden, and ease the stress and anxiety of pursuing a case alone. We represent clients across the country from our North Carolina offices. Contact us today to schedule a free consultation and receive personalized legal support from our experts.
