Tag: tenant screening company

DOJ Files Statement of Interest Arguing That Tenant Screener is Subject To Fair Housing Act The United States government informed a federal court in Massachusetts that a Texas-based tenant screening company must comply with the Fair Housing Act (FHA). This information helped the case of two potential renters who claimed the company's algorithm performed unfair screening. The United States Department of Justice (DOJ) and attorneys from the United States Department of Housing and Urban Development (HUD) filed a brief on January 9, 2022. According to the brief, prior cases similar to this one in Connecticut involved the same tenant screening company. Every case ruled that the company could still hold liability for discrimination despite not directly providing housing. They expressed that the language used in the FHA primarily addresses prohibited actions rather than those performing the actions. The tenant screening company did not share information about its algorithm. Consequently, this practice forced the housing providers to approve or deny potential tenants' rental applications. Due to their credit history, the plaintiffs complained that their applications for apartments went denied by the tenant screening company. They stated that the tenant screening company relied on credit score information obtained from an algorithm that had a disparate impact on Hispanic, low-income, and Black individuals. According to the plaintiffs, these people generally have lower credit scores than white applicants. The plaintiffs also added that they had federal vouchers, which would have covered most of the rent for the apartment. Regardless, the company's software did not consider this. As a result, a local community organization joined in the lawsuit with the women. The federal government filed the brief in response to the tenant screening company's motion to dismiss the claim. In this dismissal, it claimed not to fall under the Fair Housing Act's regulations. It also asserted that the plaintiffs did not meet the required standard for fair housing cases, as established in a 2015 Supreme Court case. However, the government's brief clarified the correct standard for making a disparate claim. It issued this brief in response to a policy that appeared neutral initially but could lead to discrimination. As such, it emphasized that the tenant screening company attempted to add requirements to the standard, implying that the complaint made by the plaintiffs did not satisfy them. However, the conditions do not apply until the discovery step of the case. The government brief clarified that people could challenge the use of credit history in a credit screening program. In this case, it is allowed based on fair housing regulations and valid only when questioning the entire screening company's formula. This questioning includes the scoring system for tenants. The government also refuted the defendant's argument about the plaintiffs not providing sufficient information concerning the disparity between voucher holders who were Black or Hispanic and those belonging to other racial groups. The tenant screening company tried to differentiate this case from the Connecticut case, where the company used software to screen potential tenants with criminal histories. In the previous suit, the plaintiffs alleged that the company had known of the discriminatory practice and could end it. Furthermore, it acted as an agent of the housing provider. However, these factors are not the same as those in the Massachusetts case. Though the factors may not match the present case, the government stressed that the tenant screening company still fell under the fair housing claim. This case illustrates the importance of partnering with a background screening company you can trust to perform thorough background checks while still complying with all applicable laws and regulations. Background checks are made easy with Pre-employ. Ask any questions you may have and learn more by contacting a sales rep today. Source

Tag: tenant screening company

DOJ Files Statement of Interest Arguing That Tenant Screener is Subject To Fair Housing Act

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