FTC Settlement Puts Tenant-Screening Accuracy in Focus

Tenant-screening reports can play an important role in deciding whether someone is approved for a lease. A recent federal case shows how inaccurate or incomplete information in these reports can create problems for applicants, property managers, and the companies that prepare the reports.

On July 9, 2026, the Federal Trade Commission announced a proposed settlement with RentGrow, a company that provides tenant-screening reports to landlords and property managers. Under the proposed order, RentGrow would pay a $2.25 million penalty to resolve allegations that it violated the Fair Credit Reporting Act and the Federal Trade Commission Act. The case remains pending, and the order must be approved by a federal judge before it takes effect.

The FTC alleged that some RentGrow reports included duplicate entries for the same criminal or eviction proceeding. According to the agency, this could make it appear that an applicant had more convictions or evictions than the person actually had. The complaint also alleged that RentGrow did not always provide consumers with complete information about the sources used to create their reports.

The case also involved the process for correcting disputed information. The FTC alleged that RentGrow did not properly handle certain disputes and, in some cases, gave consumers and property managers conflicting information about whether a report had been updated. Under the proposed settlement, the company would be required to maintain procedures intended to prevent duplicate records and comply with additional requirements involving report accuracy and consumer disputes.

Tenant-screening reports may include credit history, employment information, rental payment history, eviction records, criminal records, and other personal data. Landlords may use these reports when deciding whether to approve an application, require a co-signer, charge a larger security deposit, or impose other rental conditions.

Although this case focuses on rental housing, it also reflects a broader concern for businesses that rely on third-party information. Automated reports and external data services can speed up business decisions, but incorrect, outdated, or duplicated information may affect both consumers and organizations that use them.

The proposed settlement reflects growing attention to the accuracy of background information and the handling of consumer disputes. As businesses increasingly rely on outside vendors and automated screening systems, the quality of the underlying data remains a critical factor in the decision-making process.