Making a Lease Turned down from housing based on credit file

[xmer]

Jurisdiction

Illinois

Should I file a discrimination complaint to see why the managers company turned me down? I did email the company to see why this happened.


I applied a few years ago to the complex down south. I was on their list and was on wait list for a few years till I removed myself. This year I applied for same property but this time denied to to credit history file. I read on the HUD website denial of applications due to lack of credit history is not excusable. I'm wondering my age and lack of credit history was the reason. Or the manager chose to turn me down based on the fact I once removed myself from the wait list.

 

[army judge]

I'm wondering my age and lack of credit history was the reason. Or the manager chose to turn me down based on the fact I once removed myself from the wait list.

What should I do if my rental application is denied due to a tenant screening report?

Federal law requires a landlord who denies your tenant application, due to information in a tenant screening report, to inform you of that fact.

The Fair Credit Reporting Act
https://files.consumerfinance.gov/f/201410_cfpb_summary_your-rights-under-fcra.pdf
provides you with rights as both a rental applicant and a tenant. This federal law requires a landlord, who rejects or denies your tenant application due to information in a tenant screening report, to inform you of that fact. This notification is called an "adverse action" notice, and it must:

Be given in writing, orally, or electronically
Provide the name, address, and phone number of the company that provided the report
Notify you of your right to a free copy of the report if you request it within 60 days of the adverse action
Explain your right to dispute inaccurate information
An adverse action not only includes being denied a rental, it could also include:

Requiring a co-signer on the rental agreement or lease
Requiring a larger deposit or a higher rent payment than other applicants


Right to dispute errors on your reports
You also have the right to dispute any errors on your tenant screening report and have them corrected, whether the information is inaccurate or outdated. The tenant screening or credit reporting company generally has 30 days to investigate your dispute, however, in some cases, they could have 45 days. Some states impose shorter deadlines.

Steps to take if your rental application is denied
If you're denied a rental due to a tenant screening report, you can:

Try to find out from the landlord what information in the report was a problem to see if you can explain the situation.
Ask the landlord for a copy of the tenant screening report. The landlord must give you the name, address, and phone number of the tenant screening company, so you can get a copy from that company.
Review your tenant screening report, check for inaccurate or outdated information, and dispute any errors. If your tenant screening report contains a credit report from one of the nationwide credit reporting agencies, you can dispute that error with the credit reporting company or the company that provided the erroneous information or both.
What you can do if your rights were violated
If you believe that your rights have been violated, you may want to contact a lawyer. You may be able to sue for violations of the federal Fair Credit Reporting Act and any state law violations. If you sue under this federal law and win, you may be able to recover damages and your attorney fees. There will be applicable statutes of limitation or deadlines for bringing a lawsuit.

Housing discrimination can take many forms.
Examples of Housing Discrimination
For example, a landlord that refuses to rent to anyone with a criminal history may be in violation of the Fair Housing Act. If you think a landlord discriminated against you by denying your rental application or by evicting you because of your race, color, national origin (country of origin or ancestry), religion, sex (including sexual orientation or gender identity), familial status (families with children or pregnancy), or disability, you can file a complaint with the Department of Housing and Urban Development. Report Housing Discrimination – Main Page


Know Your Fair Housing Rights

If you have a problem with credit or consumer reporting, such as tenant screening, you can submit a complaint online
Submit a complaint | Consumer Financial Protection Bureau
or by calling (855) 411-CFPB (2372).

What should I do if my rental application is denied due to a tenant screening report? | Consumer Financial Protection Bureau

Legal Requirements for Denying a Rental Applicant (Adverse Action Letter)

https://www.apartments.com/blog/what-to-do-if-your-rental-application-is-denied

 

[Zigner]

... I read on the HUD website ...

Please post a link to what you read.

 

[zddoodah]

Should I file a discrimination complaint to see why the managers company turned me down?

No. You should only file a discrimination complaint if you have evidence of illegal discrimination.

this time denied to to credit history file. I read on the HUD website denial of applications due to lack of credit history is not excusable.

Being "denied [due] to [your] credit history" and being denied "due to [a] lack of credit history" are NOT the same thing.

I'm wondering...

So...call and ask.

 

[xmer]

It just seems stupid. Never turned down before. I already emailed the company. No responses.

 

[xmer]

Please post a link to what you read.

Well this isn't the exact link I read but it does state here they can't discriminate because of financial reasons

Housing Discrimination Under the Fair Housing Act

 

[xmer]

In Illinois you can complain about financial discrimination in housing like if they deny a subsidy voucher. But in TN I don't think they have such a state law

 

[Zigner]

Well this isn't the exact link I read but it does state here they can't discriminate because of financial reasons

Housing Discrimination Under the Fair Housing Act

No, it doesn't say that.
What that says is: "It is illegal discrimination to take any of the following actions because of race, color, religion, sex (including gender identity and sexual orientation), disability, familial status, or national origin:"

And it then goes on to list a number of items. Nowhere does it say that a decision can't be made based on financial reasons.

Do you have a different link? Or, perhaps, you simply misunderstood something you read? The latter seems more likely to me.

 

[Zigner]

In Illinois you can complain about financial discrimination in housing like if they deny a subsidy voucher. But in TN I don't think they have such a state law

SMH - lack of a credit file is not a protected characteristic.

 

[flyingron]

If they denied you because of a credit report (either because it was bad or lacking), they're required by law to give you the name of the reporting company they used. You have the right to a free copy of the report from that company to verify the contents (even if you've already used up your annual freebie request).

 

[zddoodah]

Well this isn't the exact link I read but it does state here they can't discriminate because of financial reasons

Housing Discrimination Under the Fair Housing Act

It says no such thing.

It says that, in connection with the sale or rental of housing or the extension of a mortgage loan, "It is illegal discrimination to take any of [several listed] actions because of race, color, religion, sex (including gender identity and sexual orientation), disability, familial status, or national origin."

There is no relevant reference to any form of he word "finance," and the only reference to "credit" is a statement prohibiting the application of different credit criteria on the basis of "race, color, religion," etc.

"Financial reasons" are one of the most important criteria on which most landlords may legally discriminate when it comes to rental housing.

 

[adjusterjack]

It doesn't prohibit using financial resources or credit as a criteria.

It prohibits to

"Use different qualification criteria or applications, or sale or rental standards or procedures, such as income standards, application requirements, application fees, credit analyses, sale or rental approval procedures or other requirements"

based on

"race, color, religion, sex (including gender identity and sexual orientation), disability, familial status, or national origin"

If a landlord applies the same financial standards to every application, there is no illegal discrimination.

This year I applied for same property but this time denied to to credit history file.

So? Did you pull your credit report? What's your score? Are there negative items on the report. Delinquencies? Charge offs? Unpaid collection accounts? Other?

 

[xmer]

It doesn't prohibit using financial resources or credit as a criteria.

It prohibits to

"Use different qualification criteria or applications, or sale or rental standards or procedures, such as income standards, application requirements, application fees, credit analyses, sale or rental approval procedures or other requirements"

based on

"race, color, religion, sex (including gender identity and sexual orientation), disability, familial status, or national origin"

If a landlord applies the same financial standards to every application, there is no illegal discrimination.



So? Did you pull your credit report? What's your score? Are there negative items on the report. Delinquencies? Charge offs? Unpaid collection accounts? Other?

I have no credit history. Never owned a house for one. I had been turned down once for that.

I pay my rent on time. I found out Rentgrow which the manager used has been sued nationwide for false or wrong information.

I did ask manager why they turned me down. Still no response. Also contacted Rentgrow for my report.

There is money in it in the courts I read for reports that deny housing based on reports that have wrong information etc

Would small claims be a good idea if my info is wrong or they have someone else's information ?

 

[xmer]

It still seems goofy I applied for this same property and voluntarily removed myself from their wait lists last year. Maybe this is the manager's way to avoid dealing with an out of state person?

What if they are allowing only elderly and not disabled under 50? Then it might be discrimination right? Being that their website shows subsidized. And I applied years ago and wasn't turned down like this year.

Can classactions I've joined be a reason I could be turned down?

 

[adjusterjack]

I have no credit history.

Go to www.annualcreditreport.com and request your free credit reports from Equifax, Experian, and Transunion. If you've never done that, you'll be surprised at what is on the reports, even if you've never had any debts reported.

Do you have a bank account? There are likely to have been inquiries.

You might even have a credit score. Your bank can tell you what it is.

Nobody goes through life without a credit history though the history may lack entries.

There is money in it in the courts I read for reports that deny housing based on reports that have wrong information etc

You may have a cause of action against a credit reporter for wrong information reported. Google the Fair Credit Reporting Act. But you wouldn't have a cause of action for no information reported.

Would small claims be a good idea if my info is wrong or they have someone else's information ?

You're putting the cart before the horse. First get your credit reports to see what's in them. Without them you go nowhere.

It still seems goofy I applied for this same property and voluntarily removed myself from their wait lists last year. Maybe this is the manager's way to avoid dealing with an out of state person?

What if they are allowing only elderly and not disabled under 50? Then it might be discrimination right? Being that their website shows subsidized. And I applied years ago and wasn't turned down like this year.

Can classactions I've joined be a reason I could be turned down?

Speculation doesn't butter any parsnips.

Get your credit reports and then come back to this thread for additional discussion.

 

[xmer]

I have done my reports already , there is nothing in them. The Rentgrow report said at top of paper " limited credit history".

I've already read the HUD Fair Housing Section that states "denying for lack of credit history is no reason to turn down an applicant." It seems more of advice than legal gibberish.

If this were in Illinois there would be legal grounds

 

[Zigner]

I've already read the HUD Fair Housing Section that states "denying for lack of credit history is no reason to turn down an applicant."

WHERE? Give a link to it. I asked you before, but you didn't give it.

 

[Tax Counsel]

HUD has a rule that tenants applying for federally subsidized housing may not be denied for lack of a credit history. But for private rental arrangements federal law only requires that landlords covered by federal civil rights laws not discriminate based on factors like race, sex, religion, etc. You may want to ask a local attorney or local organization that helps renters with landlord issues what the law in your state requires.

 

[Zigner]

HUD has a rule that tenants applying for federally subsidized housing may not be denied for lack of a credit history.

I'm researching this, and I can't find such a rule. Can you point me to the rule?

 

[xmer]

WHERE? Give a link to it. I asked you before, but you didn't give it.

I did state it is on the hud website under fair housing rights. If you are good with research just Google it, that's how I had to find it, navigate it