Law Offices of Robert P. Cocco, P.C.

Tenant Screening Errors Can Cost You Housing

What the FTC’s $2.25 Million RentGrow Case Means for Renters

A tenant screening report containing inaccurate or misleading information can determine whether a person is approved for an apartment, required to pay a larger security deposit, or denied housing entirely.

On July 9, 2026, the Federal Trade Commission announced that tenant screening company RentGrow had agreed to pay a $2.25 million civil penalty to resolve allegations that it violated the Fair Credit Reporting Act, commonly known as the FCRA, and the Federal Trade Commission Act. The proposed settlement highlights recurring problems in the tenant screening industry, including duplicate criminal and eviction records, incomplete disclosures, and inadequate handling of consumer disputes.

Although the allegations concern RentGrow, the case is a valuable guide to renters denied housing because of inaccurate background screening reports requested by landlords.

What Is a Tenant Screening Report?

Landlords and property management companies frequently purchase tenant screening reports before approving rental applications. These reports may include:

Credit history;
Criminal records;
Eviction filings and judgments;
Prior addresses;
Rental payment history; and
Identity information.

Companies that prepare and sell these reports are generally considered consumer reporting agencies (“CRAs”) under the FCRA. That means they must follow federal requirements protecting consumers from inaccurate, incomplete, or misleading information using reasonable procedures to ensure the maximum possible accuracy of the information it reports.

What Did the FTC Allege RentGrow Did Wrong?

Duplicate Criminal and Eviction Records

The FTC alleged that some RentGrow reports displayed multiple entries for the same criminal case or eviction proceeding making it appear that a rental applicant had more convictions or eviction cases than the person actually had.

A single court matter may produce several docket entries or records. Without adequate procedures to identify and remove duplicates, a screening report can transform one case into what appears to be several separate cases. Therefore, a landlord reviewing a report may believe the applicant has a repeated history of criminal conduct or eviction proceedings when the report is actually displaying the same event multiple times.

The FTC alleged that RentGrow knew about duplicate-record problems but did not implement reasonable corrective procedures until after the FTC began investigating the company.

Failure to Identify All Sources of Information

The FCRA generally gives consumers the right to learn what information is in their file and where that information came from.

The FTC alleged that RentGrow failed to disclose all sources used to compile certain reports including that LexisNexis Accurint supplied historical addresses and middle names that RentGrow then used to match consumers with criminal and eviction records.

Without knowing the source of the information, a consumer may have difficulty identifying how an error occurred or determining what must be corrected.

Improper Treatment of Consumer Disputes

Consumers have the right to dispute inaccurate or incomplete information in a tenant screening report. A CRA generally must conduct a reasonable reinvestigation and take appropriate action based on the results.

The FTC alleged that RentGrow sometimes labeled disputes “invalid” and took no further action. The disputed information allegedly included duplicate records and changes to court records that occurred after the original screening report was prepared.

A screening company cannot simply disregard a legitimate dispute because the issue does not fit neatly into its internal procedures. The FCRA requires meaningful consideration and reinvestigation of disputed information.

Misleading Statements About Dispute Results

The government also alleged that RentGrow misled some consumers about what happened after a successful dispute.

According to the FTC, RentGrow allegedly told certain consumers that it had notified the landlord or property manager that information had been modified or deleted when, in fact, RentGrow allegedly advised them that there had been no change.

This is especially serious because correcting a screening report may not help the consumer if the landlord who received the inaccurate report is never properly informed of the correction.

What Would the Proposed Settlement Require?

Under the proposed order filed by the Department of Justice on behalf of the FTC, RentGrow would be required to pay a $2.25 million monetary penalty and prohibit their conduct described above.

What Rights Do Renters Have Under the FCRA?

The Fair Credit Reporting Act, often called the FCRA, requires background-check companies and tenant-screening companies to use reasonable procedures to assure maximum possible accuracy.

If a company reports sealed, expunged, outdated, incomplete, or misleading criminal-history information, it may have violated the FCRA. The FCRA may allow consumers to recover actual damages, statutory damages, punitive damages, attorney’s fees, and costs, depending on the facts.

Notice of Adverse Action

When a landlord takes an adverse action based in whole or in part on a consumer report, the landlord generally must provide an adverse-action notice.

An adverse action may include:

Denying a rental application;
Requiring a co-signer;
Charging a higher deposit;
Increasing the rent; or
Imposing other less favorable rental terms.

The notice should identify the CRA that supplied the report and explain that the screening company did not make the landlord’s decision.

A Free Copy of the Report

A consumer who receives an adverse-action notice generally has the right to request a free copy of the report from the consumer reporting agency, provided the request is made within the applicable time period.

Obtain the report as soon as possible. A landlord may move quickly to rent the property to someone else, and delays can make it harder to correct the problem before the unit is gone.

The Right to Dispute Errors

Consumers may dispute information that is inaccurate, incomplete, duplicated, outdated, or associated with someone else. Common tenant screening errors include:

Another person’s criminal record appearing on the report;
A dismissed charge being reported as a conviction;
One eviction case appearing several times;
An eviction filing being reported without its final disposition;
Sealed or expunged records appearing;
Incorrect dates or case outcomes;
Records belonging to someone with a similar name; and
Corrected information not being sent to the landlord.

The dispute should clearly identify each error and include supporting documents when available.

What Should You Do After a Rental Denial?

First, promptly obtain the adverse-action notice and request a complete copy of the tenant screening report.

Next, review every section carefully. Compare court case numbers, dates of birth, addresses, middle names, dispositions, and other identifying information.

Then, send a written dispute to the screening company. Explain precisely why each item is inaccurate and attach relevant documents, such as court records, dismissal orders, expungement orders, identification documents, or correspondence from a landlord.

Keep copies of the report, dispute, supporting documents, emails, envelopes, and all responses. Also preserve evidence of the harm caused by the error, including application fees, hotel expenses, increased rent, storage charges, moving expenses, lost deposits, and communications showing embarrassment or emotional distress.

Can a Consumer Recover Compensation?

Potential relief for a consumer renter under the FCRA for a CRA violating its statutory duties may include:

Compensation for actual financial losses and emotional distress;
Statutory damages for certain willful violations;
Punitive damages in appropriate cases;
Attorneys’ fees and Litigation costs.

Denied Housing Because of an Inaccurate Tenant Screening Report?

An incorrect criminal record, duplicated eviction case, or mixed-file report can prevent a qualified renter from finding a home. The Law Offices of Robert P. Cocco represents consumers in Philadelphia and surrounding areas in matters involving inaccurate background reports, tenant screening errors, credit reporting violations, and unlawful housing denials.

Call for a free Consultation!

Source: Federal Trade Commission, “RentGrow to Pay $2.25 Million to Settle FTC Allegations the Company Violated the Fair Credit Reporting Act and FTC Act,” July 9, 2026.

This article is for general informational purposes and does not constitute legal advice. Past results do not guarantee a similar outcome in any future matter.

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