| Current economic conditions place a great deal of | | | | leasing process by making it possible for landlords |
| strain on consumers and increase credit risk for | | | | to review reports when first meeting with |
| landlords. Private landlords (independent rental | | | | applicants. Applicants pay screening fees directly |
| owners) are especially vulnerable, given the | | | | to the consumer reporting agency. Denials are |
| challenge they face gaining access to quality | | | | less awkward since they occur prior to the |
| tenant screening products. Consumer-initiated | | | | applicant paying an application fee or holding |
| tenant screening products address this problem. | | | | deposit. Applicants authorize secure access to the |
| Traditionally, landlords (end-users as described by | | | | report via the consumer reporting agency to |
| the Fair Credit Reporting Act) undergo an | | | | ensure authenticity. |
| extensive certification process prior to being | | | | Consumer Benefits |
| authorized to order and receive tenant screening | | | | The DTC model puts consumers in control of |
| reports. The cost and inconvenience associated | | | | their own information. Applicants know what is in |
| with the certification process make it difficult for | | | | their report before they apply. They have the |
| screening companies to serve this large and | | | | opportunity to dispute information they feel is |
| growing segment of the rental housing market. | | | | reported in error before it impacts their search |
| Private landlords are often left with two bad | | | | for housing. They review their report with |
| choices - use of marginal products or not | | | | landlords up front to determine whether they |
| screening at all. | | | | qualify - before paying an application fee or holding |
| On October 1, a Seattle-based consumer | | | | deposit. They avoid paying multiple screening fees |
| reporting agency introduced the industry's first | | | | before finding a landlord who will accept them. |
| direct-to-consumer (DTC) comprehensive tenant | | | | Consumer initiated credit inquiries are "soft" |
| screening product. It was developed in response | | | | inquiries. They do not impact credit score - an |
| to: | | | | added benefit associated with the DTC model. |
| · The need for a quality tenant screening | | | | There is growing discomfort among the general |
| product for independent rental owners; | | | | public and in state legislatures regarding the impact |
| · Low-income housing advocate desire for | | | | of consumer reporting on those seeking rental |
| a "portable" screening product - to reduce the | | | | housing. A common perception is that consumers |
| financial burden (on low-income people) associated | | | | are unfairly affected by unauthorized access or |
| with paying multiple screening fees before finding | | | | inaccurate information. The perception is, to a |
| landlords who will work with them; and | | | | large extent, driven by the lack of transparency |
| · The need for greater transparency in | | | | inherent in the traditional model - notwithstanding |
| consumer reporting. | | | | protections contained in state and federal |
| Landlord Benefits | | | | consumer reporting law. The DTC model |
| Under the DTC model, consumers order reports | | | | addresses this by educating consumers as to |
| on themselves. There is no need for landlord | | | | what is in their reports and, ultimately, holding |
| certification - membership fees, paperwork, site | | | | consumer reporting agencies accountable for the |
| inspections, etc. The DTC model expedites the | | | | accuracy of their products. |