Tag: Real Estate Investment

Apartment Tenants Sue Real Estate Investment Trust Over Background Checks January 3, 2023 Tenants have recently sued a prominent real estate investment trust over background checks. They filed this suit in the Los Angeles Superior Court and alleged an invasion of privacy. For example, it claims the company regularly ran investigative reports on prospective tenants instead of just credit checks. This search obtains personal information about the potential tenant from third parties. California law requires specific disclosure practices for landlords who want to perform these checks. This requirement includes notifying the tenants that they will conduct a search. They must also give the potential tenants access to the acquired information. The lawsuit does not name the defendants, though it allegedly includes some company employees. According to the case, the plaintiffs each applied to rent a unit within the last two years. During this process, they each paid for and completed housing applications. In addition, the applications stated that the company could screen for evictions and background checks. Furthermore, the applications included a release that allowed the company to obtain personal and private information from third parties. However, this practice is illegal. The lawsuit states that the company acquired investigative reports instead of running the usual creditor report. In addition, it did not inform the tenants or follow other required disclosure laws. Because the tenants did not know about the investigative reports conducted by the company, they could neither access nor correct any errors in the information used against them. According to the lawsuit, the company did not want prospective and current tenants to know about nor access the confidential reports. Allegedly, the company commissioned the reviews and purposely hid them from prospective tenants. Furthermore, the consumer reports allegedly had errors or misinformation that damaged the individual's reputation. Overall, this practice is a corporate invasion of privacy for the tenants who have applied to rent the apartments within the previous two years. The lawsuit seeks $10,000 for every investigative report prepared on a potential tenant and punitive and other damages. The suit would also require the real estate investment trust to adjust its consumer reporting policies to comply with California law. This case shows the importance of complying with consumer reporting laws. The best way to ensure your consumer reporting policies comply with all applicable laws is by partnering with a reliable background check company. The right provider will keep your policies updated and stay abreast of the latest regulations. Keep your business up to date on new laws and regulations with Pre-employ’s free news resources Contacting a sales rep today. Source

Tag: Real Estate Investment

Apartment Tenants Sue Real Estate Investment Trust Over Background Checks

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