Credit Bureau Required Credentials

The existing federal Fair Credit Reporting Act (FCRA) has always required credit-reporting agencies and tenant-screening companies to make every responsible effort to verify that customers who wish to purchase retail credit reports have a legitimate purpose for doing so. Both the credit bureaus and companies who are resellers of the bureaus’ data are responsible for compliance.

Experian, TransUnion and Equifax have instituted more stringent regulations in regard to qualifying customers who wish to receive retail credit reports or information from these reports from tenant and employment screening companies. The new requirements are intended to help combat credit fraud and identity theft. All companies which sell retail credit reports are required to qualify customers and any company not in compliance with the new rules will be denied access to retail credit reports.

These rules do not restrict credit report access to any specific real estate owner, investors or managers, nor do they govern access to anything other than retail credit reports. All other types of screening reports will remain available to customers. Screening companies also may continue to sell credit reports and credit report information, but only to those fully qualified under the new regulations.

Specific requirements of each credit bureau vary and their main similarities are as follows:

On-site Inspections"

Real estate owners, investors and managers who wish to receive retail credit reports must undergo an on-site inspection of the location where reports are accessed and stored. Experian, TransUnion and Equifax all require an independent inspection company, approved by the bureau, to conduct the inspection.

Subscribers who operate out of a home office, the inspection may be required annually. To pass the inspection, subscribers must have a locked door for the premises where retail credit reports are accessed and stored, a locked filing cabinet to safeguard the reports, and a shredder to destroy reports no longer needed. Retail credit bureaus also require assurance that subscribers are not involved in any side businesses that may not be approved for the handling of credit reports (e.g., Internet locator services, bail bond companies, credit repair agencies or credit clinics to name a few).

Additional Paperwork

The qualifying process also includes credentialing of all subscribers. This involves confirming the identity of the subscriber, which requires obtaining a copy of an individual subscriber’s driver’s license, or a copy of a business subscriber’s business license. Proof of ownership of rental properties. For incorporated businesses, articles of incorporation may be required. For sole proprietors or partnerships, an assumed business name filing, or individual retail credit report may be required. A subscriber’s status as a real estate owner or manager may be verified using on line phone directories and membership in industry organizations.

On Target Solution

If you do not qualify under these rules or, if you simply do not want to undergo the required on-site inspection(s), we will provide access to order On Target ScoreCard and remove the necessary data from the retail credit report.

On Target ScoreCard reviews an applicants background and produces a leasing recommendation, both of which are based on a thorough and objective analysis of the retail credit record, evictions, lease violations and criminal history. On Target ScoreCard also takes into account income to rent ratio and debt load.

On Target ScoreCard provides subscribers with:

Verification of information on the rental application
Proprietary standards to fully evaluate the application
A fair and meaningful leasing recommendation
The ability to customize your criteria settings to meet your own acceptance criteria
A leasing recommendation
A rejection letter which is compliant with the FCRA.

You Get

All the information you need to make a sound rental decision, in a clear, easy-to-understand format, comprehensive, and objective.

You avoid

Bureau-required on-site inspections and fees
Potential inconsistent decision making, which may lead to exposure to the federal fair housing laws
The task of reading and understanding credit reports
The potential of sensitive consumer data falling into the wrong hands
On Target ScoreCard Plus

Those who have submitted the required paperwork, paid and passed the on-site inspection will have access to full credit reports in the Order Menu.