Privacy/Fair Credit Reporting Act (FCRA) and FACT Act of 2003

FCRA/FACT Act of 2003

• Fair Credit Reporting Act/2003 FACT Act
  Describes and provides full copies of federal legislation that ensures accuracy in consumer credit reports and ensures the privacy of information in them. Has important implications in resident and employee screening and other apartment operations.

• NMHC Guidance: FACT Act of 2003
  NMHC White Paper detailing new law that makes significant changes to the FCRA, including creating national credit standards and providing new consumer privacy protections. Identifies apartment operations which will be affected. (December 2003)

• NMHC Guidance: 1996 Revisions to the FCRA
  Reviews impact of new FCRA requirements on apartment firms who use consumer credit reports to screen rental applicants. (August 21, 1997)

• NMHC Guidance: FCRA Requirements for Employers
  NMHC summary of FTC interpretive letters clarifying the disclosures employers must make under the FCRA when verifying the background of employees or prospective employees. (January 1999)

Notification and Disclosure Requirements

• NMHC On-Demand Webinar: Dodd Frank and the New Credit Score Disclosure
  Downloadable and streaming versions of NMHC's webinar discusing new regulations in Dodd Frank that may impose additional disclosure obligations on apartment firms that use a “credit score” in the resident screening process. (September 2011)

• NMHC Guidance: Credit Score Disclosure Obligation
  NMHC/NAA Guidance document on the key elements of new credit score disclosure obligations. (July 2011)

• Final Privacy Regulations: Notification and Disclosure Requirements
  Final law that requires covered real estate companies to develop a privacy policy; periodically inform customers of that policy; and obtain permission before sharing consumer information with unaffiliated third parties. (May 24, 2000)

• NMHC Guidance: New FTC Disclosure and Notification Privacy Rules
  Examines how new Federal Trade Commission privacy regulations governing the disclosure of consumer information apply to specific activities conducted by apartment firms. (December 7, 2000)

Data Disposal Requirements

• Privacy Regulations: Safeguarding Requirements
  Federal law governing steps covered firms must take to ensure the security and confidentiality of customer information. (May 17, 2002)

• NMHC Guidance: FACT Act Data Disposal Requirements
  Describes federal rules that went into effect on June 1, 2005 that require businesses to shred or otherwise destroy personal information obtained to screen residents and employees. (June 2005)

Red Flags and Identity Theft Regulations

• NMHC Guidance: FACT Act Identity Theft Regulations--Red Flag and Address Discrepancy Rules
  FAQs on regulations that apply to users of consumer reports, including apartment operators. (Updated May 2009)

FTC Resources

• FTC Web Site

• FTC Letter: Third Party Information Requirements
  FTC clarification to NMHC that FCRA "Third Party Information" requirements do not apply to information obtained from prior landlords. (March 1999)

• FTC Letter Re: Using Credit Reports to Pursue "Skipped" Residents
  FTC guidance on whether a landlord's attorney, seeking to collect a disputed debt arising from a month-to-month lease, has a permissible purpose to obtain a consumer report in connection with legal action after the tenant has vacated the apartment. (July 2000)

• FTC Guidance: What Landlords Need to Know About Using Consumer Credit Reports
  Identifies steps necesarry to comply with the FCRA when using credit bureau reports for resident screening. (December 2001)