CFPB Issues Background Screening, File Disclosure Advisory Opinions

On January 11, 2024, the Consumer Financial Protection Bureau (CFPB) issued two advisory opinions addressing consumer reporting agencies' (CRAs) obligations, under the Fair Credit Reporting Act (FCRA), related to information included in background check reports and consumer file disclosures.

The advisory opinions expand on a coordinated federal agency effort, initiated by the White House's January 2023 Blueprint for a Renters Bill of Rights, and led, in part, by the CFPB, to ensure that the "background screening industry adheres to the law" and "tenant screening companies do not illegally disseminate false and misleading information about tenants and that tenants can challenge erroneous information." The White House issued further measures in July 2023, which included agency guidance communicating the Biden administration's "expectations on informing renters of what information in their screening report is responsible for their application being denied."