We are now required to disclose the "End User" of the credit information when accessing a person's credit file. This means when we pull their credit, a line will appear which includes your name (as you originally filled out your User Agreement with us).

We have spent a lot of time over the past few months updating our User files to comply with this new requirement. Many of you have filled out the "User Update Form" and returned it to us. From time to time, Equifax will be auditing accounts, verifying that we are accessing credit reports for permissible purposes only, and that the "End User" (you) does indeed have a signed application on file. It is VERY IMPORTANT that you keep the signed rental application from your prospective tenants (whether or not you rent to them) for at least 3 years. When you call or fax us requesting a credit file, you have initiated a business transaction which will be on record for 3 years with the credit bureau. It is also a business transaction which is closely regulated by the FTC. Abuse of credit reports, or obtaining them under false pretenses carries stiff penalties, including fines, punitive damages and prison time!

Another significant change concerns "adverse action" resulting from information on a credit report. If you deny someone a rental unit, or even change the original terms offered (more deposit, last month's rent required) you are required to disclose certain things to them. You can notify them verbally, or by written or electronic means. Your disclosure must indicate the source of the information which caused you to take the adverse action. If that source is a credit reporting agency (Equifax for example) you must also tell them that the agency did not have any part in making the decision. You must let them know they have a right to a written copy of their report, and provide them with the name and address of the agency, as well as a toll-free phone number. If the source is information obtained from Rental Research, refer them to us. YOU ARE NOT REQUIRED TO DISCLOSE THE NAMES OF OTHER LANDLORDS OR APARTMENT COMPLEXES WHICH PROVIDED TENANT REFERENCES. THEIR CONFIDENTIALITY IS STILL PROTECTED.

If you contact Rental Research, we will take care of this disclosure requirement for you by sending them an adverse action letter we have developed. There is no additional charge for this service. Simply call and let us know you would like a letter sent. If you choose to notify your applicants yourself, be sure you know the disclosure requirements.

Other changes include an "opt-out" option, to avoid getting pre-screened credit offers, and a requirement that the Credit Reporting Agency have an actual person on duty to take requests and complaints during normal business hours. In the past, only automated voice-mail systems were available on the toll free line. A full text of the FCRA, 15 U.S.C. 1681 et seq., is available at http://www.ftc.gov.