Bulletin 2021-03: Consumer Reporting of Rental Information
| Published date | 07 July 2021 |
| Citation | 86 FR 35595 |
| Record Number | 2021-14459 |
| Section | Rules and Regulations |
| Court | Consumer Financial Protection Bureau |
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
Rules and Regulations Federal Register
35595
Vol. 86, No. 127
Wednesday, July 7, 2021
1
The term ‘‘rental information’’ in this Bulletin
is used to refer to consumer reporting information
about a rental relationship, including eviction
information and information about unpaid rent.
Other types of information, including criminal
background information and credit information,
have important impacts on the ability of renters to
secure housing and access other opportunities, but
are not the focus of this Bulletin. Rental information
is included in consumer reports issued by tenant-
screening companies and other CRAs. Sources of
rental information include public records and
information provided by furnishers, including debt
collectors and landlords. Consumer reports issued
by tenant-screening companies may include
automated scores or recommendations provided to
users as well as rental payment, eviction, and other
information.
2
See generally Eviction Lab, Princeton Univ.,
https://evictionlab.org/eviction-tracking/ (last
visited June 21, 2021).
3
Bureau of Consumer Fin. Prot., Complaint
Bulletin: COVID–19 issues described in consumer
complaints (July 2021), https://files.consumer
finance.gov/f/documents/cfpb_covid-19-issues-
described-consumer-complaints_complaint-
bulletin_2021-07.pdf (CFPB Complaint Bulletin).
4
Press Release, U.S. Dep’t of Health & Human
Servs., Secretary Azar Declares Public Health
Emergency for United States for 2019 Novel
Coronavirus (Jan. 31, 2020), https://www.hhs.gov/
about/news/2020/01/31/secretary4azar-declares-
public-health-emergency-us-2019-novel-
coronavirus.html. By the end of August 2020, there
were over 5,500,000 COVID–19 cases identified in
the United States and over 174,000 deaths related
to the disease. See 85 FR 55292, 55292 (Sept. 4,
2020). As of June 27, 2021, the Centers for Disease
Control and Prevention (CDC) estimates a total of
601,221 deaths related to COVID–19 in the United
States. Ctrs. for Disease Control & Prevention,
United States COVID–19 Cases, Deaths, and
Laboratory Testing (NAATs) by State, Territory, and
Jurisdiction, https://covid.cdc.gov/covid-data-
tracker/#cases_totaldeaths (last visited June 27,
2021).
5
85 FR 15337 (Mar. 18, 2020). The national
emergency was continued on February 24, 2021. 86
FR 11599 (Feb. 26, 2021).
6
See Bureau of Consumer Fin. Prot., Housing
Insecurity and the COVID–19 Pandemic, at 5 (Mar.
1, 2021), https://files.consumerfinance.gov/f/
documents/cfpb_Housing_insecurity_and_the_
COVID-19_pandemic.pdf (CFPB Housing Insecurity
Report).
7
See id. at 6.
8
See, e.g., Joint Ctr. for Hous. Studies, Harvard
Univ., Renters’ Responses to Financial Stress
During the Pandemic 1, 14–15, 19–20 (Apr. 2021),
https://www.jchs.harvard.edu/sites/default/files/
research/files/harvard_jchs_renter_responses_
covid_airgood-obrycki_etal_2021.pdf.
BUREAU OF CONSUMER FINANCIAL
PROTECTION
12 CFR Part 1022
Bulletin 2021–03: Consumer Reporting
of Rental Information
AGENCY
: Bureau of Consumer Financial
Protection.
ACTION
: Enforcement compliance
bulletin and policy guidance.
SUMMARY
: The Bureau of Consumer
Financial Protection (Bureau) is issuing
this Enforcement compliance bulletin
and policy guidance (Bulletin) regarding
consumer reporting of rental
information in light of upcoming
heightened risks to renters associated
with inaccurate consumer reporting
information. As pandemic-related
government interventions aimed at
protecting renters begin to expire over
the coming months, the Bureau will be
paying particular attention to consumer
reporting agencies’ (CRAs’) and
furnishers’ compliance with their
accuracy and dispute obligations under
the Fair Credit Reporting Act (FCRA)
and Regulation V with respect to rental
information. The Bureau will hold CRAs
and furnishers accountable for failing to
comply with the FCRA and Regulation
V. The economic recovery of renters and
their ability to secure new rental
housing should not be impeded by
noncompliance with the law.
DATES
: This bulletin is applicable on
July 7, 2021.
FOR FURTHER INFORMATION CONTACT
:
Susan Stocks, Assistant Deputy
Enforcement Director for Policy and
Strategy, Office of Enforcement;
Amanda Quester, Pavneet Singh, Laura
Stack, or Priscilla Walton-Fein, Senior
Counsels, Office of Regulations, at 202–
435–7700. If you require this document
in an alternative electronic format,
please contact CFPB_Accessibility@
cfpb.gov.
SUPPLEMENTARY INFORMATION
:
I. Background
Rental information in consumer
reports plays a critical role in
consumers’ access to rental housing,
credit, and other opportunities.
1
As the
eviction moratoria and other
government interventions aimed at
alleviating the economic and public
health impacts of the 2019 novel
coronavirus (COVID–19) pandemic
begin to expire, the Bureau anticipates
that many renters will face eviction
from their homes, rental arrearages, and
collection attempts to recover unpaid
rent.
2
Consumers have complained to
the Bureau about the financial impacts
of the pandemic on their ability to stay
current on rental payments and about
negative rental information related to
the pandemic in consumer reports.
3
An
increase in negative rental information
in the consumer reporting system,
combined with an increase in the
number of consumers seeking rental
housing, may create new risks that
inaccurate negative rental information
will be included in tenant-screening
reports and that such inaccuracies will
affect increased numbers of consumers.
Inaccurate rental information in tenant-
screening reports can have devastating
impacts on consumers, including
impairing the ability of renters
negatively impacted by the pandemic to
secure new rental housing and
otherwise recover from the pandemic’s
economic effects. An increase in
housing instability caused by inaccurate
rental information could undermine the
nation’s efforts to recover from the
pandemic.
On January 31, 2020, the Department
of Health and Human Services declared
a public health emergency for the entire
United States to aid the nation’s
healthcare community in responding to
the COVID–19 pandemic.
4
On March
13, 2020, then-President Trump
declared a national emergency
concerning the COVID–19 pandemic,
citing the strain on the healthcare
system and the need for additional
measures to contain and combat the
spread of COVID–19.
5
Income shocks
resulting from the pandemic, such as a
job loss, reduced work hours, or the
death or illness of a family member,
contributed to an increase in housing
and financial insecurity for many
households.
6
The financial impact of
the pandemic was especially
pronounced for renters.
7
Survey data
indicate that about half of all renters
saw their incomes fall during the
pandemic due to lost employment or
reductions in hours worked.
8
In August
2020, some estimates projected that up
to 30 to 40 million individuals in 13 to
17 million renter households were at
risk of eviction over the course of the
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9
CFPB Housing Insecurity Report, supra note 6,
at 15 (citing Aspen Inst., The COVID–19 Eviction
Crisis: An Estimated 30–40 Million People in
America Are at Risk (Aug. 7, 2020), https://
www.aspeninstitute.org/blog-posts/the-covid-19-
eviction-crisis-an-estimated-30-40-million-people-
in-america-are-at-risk/).
10
Id. (citing Eviction Lab, Princeton Univ.,
https://evictionlab.org/national-estimates/ (May 11,
2018)).
11
85 FR 55292 (Sept. 4, 2020).
12
See id.; see also 42 U.S.C. 264 and its
implementing regulation 42 CFR 70.2.
13
85 FR 55292, 55297 (Sept. 4, 2020).
14
Section 502 of title V, Division N of the
Consolidated Appropriations Act, 2021, Public Law
116–260, 134 Stat. 1182, 2078 (2020), extended the
original CDC Order until January 31, 2021. On
January 29, 2021, following an assessment of the
ongoing pandemic, the CDC Director renewed the
CDC Order until March 31, 2021. 86 FR 8020 (Feb.
3, 2021). On March 29, 2021, the CDC Director
extended the CDC Order until June 30, 2021. 86 FR
16731 (Mar. 31, 2021). On June 24, 2021, the CDC
Director extended the CDC Order until July 31,
2021. 86 FR 34010 (June 28, 2021).
15
CARES Act section 4024, Public Law 116–136,
134 Stat. 281, 492 (2020).
16
The temporary eviction moratorium under the
CARES Act expired in July 2020. Id.
17
These protections included a prohibition on
charging fees, penalties, or other charges to the
tenant related to the nonpayment of rent while the
temporary moratorium was in place. CARES Act
section 4024(b)(2), 134 Stat. 494.
18
See infra note 31.
19
See, e.g., Eviction Lab, COVID–19 HOUSING
POLICY SCORECARD, https://evictionlab.org/
covid-policy-scorecard/ (last visited June 17, 2021);
Perkins Coie LLP, COVID–19 Related Eviction and
Foreclosure Orders/Guidance 50-State Tracker
(June 17, 2021), https://www.perkinscoie.com/en/
news-insights/covid-19-related-eviction-and-
foreclosure-ordersguidance-50-state-tracker.html.
20
CFPB Housing Insecurity Report, supra note 6,
at 3.
21
See, e.g., 86 FR 21163, 21166–67 (Apr. 22,
2021); see also Ashley Balcerzak, NJ renters still
being locked out by landlords despite COVID
eviction freeze (Mar. 11, 2021), https://
www.northjersey.com/story/news/2021/03/11/
njrental-assistance-covid-eviction-freeze-
ignoredsome-landlords/6892203002/; Annie Nova,
The CDC banned evictions. Tens of thousands have
still occurred, CNBC (Jan. 14, 2021), https://
www.cnbc.com/2020/12/05/why-home-evictions-
are-still-happeningdespite-cdc-ban.html; Jeff
Ernsthausen et al., Despite Federal Ban, Landlords
Are Still Moving to Evict People During the
Pandemic, ProPublica (Apr. 16, 2020), https://
www.propublica.org/article/despite-federal-ban-
landlords-are-still-moving-to-evict-people-during-
the-pandemic.
22
CFPB Complaint Bulletin, supra note 3.
23
86 FR 21163, 21163–64 (Apr. 22, 2021); see
also, e.g., Press Release, Bureau of Consumer Fin.
Prot., CFPB Acting Director Uejio & FTC Acting
Chairwoman Slaughter Issue Joint Statement on
Preventing Illegal Evictions (Mar. 29, 2021), https://
www.consumerfinance.gov/about-us/newsroom/
cfpb-acting-director-uejio-and-ftc-acting-
chairwoman-slaughter-issue-joint-statement-on-
preventing-illegal-evictions/.
24
See generally Eviction Lab, Princeton Univ.,
https://evictionlab.org/eviction-tracking/ (last
visited June 21, 2021). For many households, a
return to pre-pandemic levels of income may allow
them to make rental payments going forward, but
may not permit them to pay back rent owed.
According to one report, almost half of all renter
households were rental cost-burdened at the time
the pandemic hit, based on 2018 numbers. See
Emily Benfer et al., The COVID–19 Eviction Crisis:
An Estimated 30–40 Million People in America Are
at Risk, Aspen Inst. (Aug. 7, 2020), https://
www.aspeninstitute.org/blog-posts/the-covid-19-
eviction-crisis-an-estimated-30-40-million-people-
in-america-are-at-risk/ (citing https://
www.jchs.harvard.edu/sites/default/files/Harvard_
JCHS_Americas_Rental_Housing_2020.pdf). Rental
cost burden is defined as households that pay over
30 percent of their income towards rent. Id. Also
in 2018, 10.9 million renter households (25 percent
of all renter households) were spending over 50
percent of their income on rent each month. Id.
25
See CFPB Housing Insecurity Report, supra
note 6, at 8, 18; see also Pew Research Ctr.,
Economic Fallout From COVID–19 Continues To
Hit Lower-Income Americans the Hardest (Sept. 24,
2020), https://www.pewresearch.org/social-trends/
2020/09/24/economic-fallout-from-covid-19-
continues-to-hit-lower-income-americans-the-
hardest/.
26
See, e.g., Press Release, Board of Governors of
the Fed. Reserve Sys., Federal Reserve Issues FOMC
Statement (June 16, 2021), https://
www.federalreserve.gov/newsevents/pressreleases/
monetary20210616a.htm.
27
CFPB analysis of U.S. Census Bureau, Census
Household Pulse Survey, Week 30 (May 12–May 24,
2021), https://www2.census.gov/programs-surveys/
demo/tables/hhp/2021/wk30/housing1b_
week30.xlsx.
28
Id.
29
Id.
30
Id.
pandemic.
9
In comparison,
approximately 900,000 renter
households are evicted in a typical
year.
10
On September 4, 2020, the Centers for
Disease Control and Prevention (CDC)
published an agency order entitled
‘‘Temporary Halt in Residential
Evictions To Prevent the Further Spread
of COVID–19’’ (CDC Order).
11
Citing the
historic threat to public health posed by
the COVID–19 pandemic, the CDC
Order established an eviction
moratorium that generally limits the
circumstances in which certain persons
may be evicted from residential
property.
12
The CDC Order initially was
set to expire on December 31, 2020.
13
The CDC Order has been extended four
times and currently is set to expire on
July 31, 2021.
14
In addition to the CDC’s eviction
moratorium, Federal, State, and local
governments have taken a variety of
other actions to alleviate the rental
housing-related impacts of the COVID–
19 pandemic, including establishing
other eviction moratoria and rental
assistance programs. For instance,
section 4024 of the Coronavirus Aid,
Relief, and Economic Security Act
(CARES Act)
15
provided a temporary
moratorium on eviction filings
16
as well
as other protections for tenants in
certain rental properties with Federal
assistance or federally related
financing.
17
In addition, as discussed in
more detail below, the Federal
Emergency Rental Assistance (ERA)
programs established by the U.S.
Department of the Treasury (Treasury)
have made billions of dollars available
to eligible households by funding rental
assistance programs administered by
State and local governments.
18
State and
local governments have also
implemented temporary eviction
moratoria, rent freezes, and additional
rental assistance programs.
19
These governmental actions have
reduced evictions so far.
20
However, the
Bureau is aware of concerns that some
landlords may have evicted tenants in
violation of applicable eviction
moratoria and that other tenants may
have preemptively moved out of rental
housing to avoid an eviction filing or
been subject to other types of informal
evictions outside the judicial eviction
process.
21
The Bureau’s analysis of
recent consumer complaints indicates
that renters have expressed concerns
about debt collection activities
following evictions, including attempts
to collect questionable charges and
fees.
22
These reports and complaints are
an area of concern for the Bureau, and
Bureau staff will be monitoring and
investigating eviction practices to
ensure that they are complying with the
law. Evicting tenants in violation of the
CDC Order, State, or local moratoria, or
evicting or threatening to evict them
without apprising them of their legal
rights under such moratoria, may violate
prohibitions against deceptive and
unfair practices under the Fair Debt
Collection Practices Act and the Federal
Trade Commission Act.
23
Moreover, as the CDC Order and other
measures begin to expire, many
households will face difficulties
navigating significant rental payment
arrearages.
24
Low-income and minority
renters have been disproportionately
affected by the economic effects of the
COVID–19 pandemic, including job
losses.
25
Although economic conditions
have improved in recent months,
26
13
percent of adult renters were behind on
rent in May 2021.
27
Renters in low-
income households were more likely to
report they were behind on rental
payments than those in higher-income
households. As of May 2021, more than
one in six renters with household
incomes under $25,000 reported that
they were behind on their rent.
28
An
estimated 19 percent of renters with
children report being not caught up on
rent, compared to 10 percent not living
with anyone under 18.
29
Minority
renters were more likely to report that
their household was not caught up on
rent: 21 percent of Black renters, 17
percent of Hispanic renters, and 17
percent of Asian renters said they were
not caught up on rent, compared to 9
percent of white renters.
30
Accordingly,
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31
Eligible grantees of ERA funds include States
(including the District of Columbia), U.S. territories,
local governments with more than 200,000
residents, the Department of Hawaiian Home Lands,
and Indian tribes or the tribally designated housing
entity of an Indian tribe, as applicable. See U.S.
Dep’t of the Treasury, Emergency Rental Assistance
Program, https://home.treasury.gov/policy-issues/
coronavirus/assistance-for-state-local-and-tribal-
governments/emergency-rental-assistance-program
(last visited June 25, 2021). Treasury has
established two separate ERA programs: ERA1,
which provides up to $25 billion in rental
assistance under the Consolidated Appropriations
Act, 2021, Public Law 116–260, 134 Stat. 1182
(2020), and ERA2, which provides up to $21.55
billion in rental assistance under the American
Rescue Plan Act of 2021, Public Law 117–2, 135
Stat. 4 (2021). Id. At the same time that funds were
allocated for rental assistance under ERA2, the
Federal government also implemented additional
guidance to increase access to funds by renters most
in need of assistance to avoid evictions. For
example, Treasury guidance now makes clear that
emergency rental assistance provided under ERA2
must be offered directly to renters when landlords
do not accept payment. The new guidance also
allows rental assistance programs under ERA2 to
offer assistance directly to renters before reaching
out to landlords. See U.S. Dep’t of the Treasury,
Emergency Rental Assistance Fact Sheet (May 7,
2021), https://home.treasury.gov/system/files/136/
FACT_SHEET-Emergency-Rental-Assistance-
Program_May2021.pdf. The Treasury guidance was
updated again on June 24, 2021 to further support
the deployment of ERA funds. See U.S. Dep’t of the
Treasury, Emergency Rental Assistance Fact Sheet
(June 24, 2021), https://home.treasury.gov/system/
files/136/Treasury_Fact_Sheet_6-24-21.pdf.
Treasury has published frequently asked questions
(FAQs) related to the ERA programs, which are
available at: https://home.treasury.gov/system/files/
136/ERA_FAQs_6-24-21.pdf.
32
See U.S. Dep’t of the Treasury, Emergency
Rental Assistance Program, https://
home.treasury.gov/policy-issues/coronavirus/
assistance-for-state-local-and-tribal-governments/
emergency-rental-assistance-program (last visited
June 25, 2021).
33
See U.S. Dep’t of the Treasury, Emergency
Rental Assistance Fact Sheet (June 24, 2021),
https://home.treasury.gov/system/files/136/
Treasury_Fact_Sheet_6-24-21.pdf.
34
86 FR 34010, 34013 (June 28, 2021).
35
U.S. Dep’t of the Treasury, Emergency Rental
Assistance Program, https://home.treasury.gov/
policy-issues/coronavirus/assistance-for-state-local-
and-tribal-governments/emergency-rental-
assistance-program (last visited June 28, 2021).
36
See Bureau of Consumer Fin. Prot., Federal
Help With Paying Your Rent, https://
www.consumerfinance.gov/coronavirus/mortgage-
and-housing-assistance/renter-protections/
emergency-rental-assistance-for-renters/ (last
visited June 25, 2021).
37
Under the CARES Act, if a homeowner attests
to a hardship related directly or indirectly to the
COVID–19 pandemic, homeowners with mortgages
backed by the government-sponsored enterprises
(GSEs) and federally backed mortgages have the
right to request and obtain a forbearance for up to
180 days, and an extension for another 180 days.
CARES Act section 4022(b), 134 Stat. 490. Guidance
from the GSEs and Federal agencies allow up to 18
months of forbearance. Many servicers and
investors of privately owned mortgages not covered
by the CARES Act offer similar protections. Further,
the CARES Act and guidance from the GSEs and
Federal agencies have prohibited lenders and
servicers of GSE and federally backed loans from
beginning foreclosures through July 2021. When
forbearance periods and the foreclosure moratoria
end, some homeowners who are significantly
behind on their mortgage payments may have
limited options to avoid foreclosure if they do not
reach agreement with their servicers on a workout
option. See CFPB Housing Insecurity Report, supra
note 6, at 11–13. To the extent these homeowners
enter foreclosure and lose their homes, many are
likely to seek housing options in the rental market.
38
See, e.g., 2021 Or. Laws Ch. 39 (S.B. 282)
(preventing landlords from reporting to a CRA
nonpayment of rent, charges, and fees accrued on
or after April 1, 2020, and before July 1, 2021, and
from considering, when evaluating a rental
applicant, an action to recover possession if entered
on claims that arose on or after April 1, 2020, and
before March 1, 2022, or an applicant’s unpaid rent,
including rent reflected in judgments or referrals of
debt to a collection agency, that accrued on or after
April 1, 2020, and before March 1, 2022).
39
See, e.g., 735 Ill. Comp. Stat. 5/9–122
(providing that the court file shall be sealed upon
the commencement of any residential eviction
action during the period beginning March 9, 2020,
and ending March 31, 2022).
40
The NCLC report states that 90 percent of
landlords run background checks on prospective
tenants. Nat’l Consumer Law Ctr., Broken Records
Redux: How Errors by Criminal Background Check
Companies Continue to Harm Consumers Seeking
Jobs and Housing 3 (Dec. 2019), https://
www.nclc.org/images/pdf/criminal-justice/report-
broken-records-redux.pdf.
41
See, e.g., Tex Pasley et al., Shriver Ctr. on
Poverty Law, Screened Out: How Tenant Screening
Reports Undermine Fair Housing Laws and Deprive
Tenants of Equal Access to Housing in Illinois (Jan.
2021), https://www.povertylaw.org/report/tenant-
screening-report/.
low-income and minority renters are
more likely to be affected by the
expiration of the CDC’s eviction
moratorium and other temporary
measures aimed at reducing evictions
and supporting renters unable to make
their rental payments.
The Federal ERA programs were
established to address the concerns
about rental arrearages.
31
ERA funds
may be used to provide assistance to
eligible households and their landlords
to pay rent, utilities, and certain other
housing costs, including arrearages for
rent and utility payments.
32
Grantees of
ERA funds have been working to ramp
up their deployment of funds.
33
As the
CDC has noted, though there are
indications that emergency rental
assistance has started to reach
increasing numbers of households over
recent months, there are likely hundreds
of thousands of applications for
assistance that currently remain
outstanding as programs accelerate their
activity.
34
The Bureau is concerned that
renters may be evicted for nonpayment
of rent even as they are attempting to
access these funds. The Bureau
encourages landlords and renters to
consider their options under these
programs. In addition to the extensive
information about rental assistance
programs under the ERA available on
Treasury’s website,
35
information about
rental assistance programs under the
ERA is also available on the Bureau’s
website.
36
The Bureau anticipates that many
tenants who face eviction or have
experienced economic shocks during
the pandemic will seek alternative
housing in the rental market. In addition
to current renters seeking new housing,
the Bureau also anticipates a likely rise
in consumers who are currently
homeowners seeking rental housing as
pandemic-related mortgage forbearance
programs and foreclosure moratoria
come to an end.
37
The Bureau is concerned that
information concerning evictions and
rental payment arrearages related to the
pandemic’s effects may not be a reliable
predictor of a consumer’s future
performance given the extent of the
economic dislocation caused by the
pandemic. The use of pre-pandemic
relationships and scoring models on
pandemic data may lead to unreliable
conclusions regarding a consumer’s
future performance and may hinder
public policy efforts to protect
consumers during the pandemic and
promote an equitable recovery from the
pandemic. Some States and local
governments have taken steps to prevent
the reporting or use of information
related to evictions and rental arrearages
arising during the pandemic.
38
For
example, some States have taken or are
considering taking steps to make it
easier to seal or expunge eviction
records.
39
In the upcoming transition period
during which the Bureau anticipates
both an increase in negative rental
information in the consumer reporting
system and an increase in consumers
seeking rental housing, the Bureau is
concerned that existing problems with
the accuracy of tenant-screening and
other consumer reports will be
exacerbated. According to a 2019 report
by the National Consumer Law Center
(NCLC), the vast majority of landlords
use tenant-screening reports to screen
rental-housing applicants.
40
These
reports, which are obtained from one of
the nation’s many tenant-screening
companies,
41
may include traditional
credit report data, criminal background
history, and rental information.
Inaccuracies in negative rental
information included in consumer
reports can have significant damaging
consequences for tenants’ future access
to rental housing, credit, and other
opportunities. For example, an
applicant whose tenant-screening report
shows past litigation or a poor rental
payment history may find it difficult or
more expensive to rent property, and
many landlords will not rent to an
applicant if their screening report shows
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42
See, e.g., CFPB Complaint Bulletin, supra note
3 (noting that, in their complaints to the Bureau,
consumers have expressed concerns that an
eviction would have detrimental effects on their
ability to secure future housing and have reported
facing homelessness because an eviction had
negatively affected their credit, making it more
difficult to secure housing); Kaveh Waddell, How
Tenant Screening Reports Make It Hard for People
to Bounce Back from Tough Times, Consumer
Reports (Mar. 11, 2021), https://www.consumer
reports.org/algorithmic-bias/tenant-screening-
reports-make-it-hard-to-bounce-back-from-tough-
times/.
43
86 FR 16731, 16733–34 (Mar. 31, 2021). See
also 86 FR 34010, 34013 (June 28, 2021) (noting that
‘‘[e]victed renters must move, which leads to
multiple outcomes that increase the risk of COVID–
19 spread’’).
44
See, e.g., 15 U.S.C. 1681e(b), 1681i, 1681s–2; 12
CFR pt. 1022.
45
See, e.g., Fed. Trade Comm’n, Report to
Congress Under Section 319 of the Fair and
Accurate Credit Transactions Act of 2003 (Dec.
2012), https://www.ftc.gov/sites/default/files/
documents/reports/section-319-fair-and-accurate-
credit-transactions-act-2003-fifth-interim-federal-
trade-commission/130211factareport.pdf (finding
that one in five consumers had an error on at least
one of their three nationwide credit reports). More
recently, the Bureau and the Federal Trade
Commission hosted a full-day public workshop to
discuss issues affecting the accuracy of both
traditional credit reports and employment and
tenant background screening reports. Fed. Trade
Comm’n, Accuracy in Consumer Reporting
Workshop (Dec. 10, 2019), https://www.ftc.gov/
news-events/events-calendar/accuracy-consumer-
reporting-workshop.
46
See, e.g., CFPB Complaint Bulletin, supra note
3.
47
See, e.g., Lauren Kirchner & Matthew
Goldstein, How Automated Background Checks
Freeze Out Renters, N.Y. Times (May 28, 2020),
https://www.nytimes.com/2020/05/28/business/
renters-background-checks.html; Complaint, United
States v. Appfolio, Inc., No. 1:20–cv–03563 (D.D.C.
Dec. 8, 2020), https://www.ftc.gov/system/files/
documents/cases/ecf_1_-_us_v_appfolio_
complaint.pdf (alleging failure to follow reasonable
procedures relating to the use of identifiers to
match criminal and eviction records to consumers
for purposes of preparing tenant-screening reports);
Complaint, FTC v. RealPage, Inc., No. 3:18–cv–
02737–N (N.D. Tex. Oct. 16, 2018), https://
www.ftc.gov/system/files/documents/cases/152_
3059_realpage_inc_complaint_10-16-18.pdf
(alleging failure to follow reasonable procedures
relating to the matching criteria used to match
criminal records to consumers for purposes of
preparing tenant-screening reports).
48
Joshua Comenetz, U.S. Census Bureau,
Hispanic Surnames Rise in Popularity (Aug. 9,
2017), https://www.census.gov/library/stories/2017/
08/what-is-in-a-name.html (‘‘Twenty-six surnames
cover a quarter of the Hispanic population and 16
percent of Hispanic people reported one of the top
10 Hispanic names. The pattern is similar for
Asians and blacks.’’).
49
See, e.g., Complaint, United States v. Appfolio,
Inc., supra note 47 (alleging failure to follow
reasonable procedures to assure that the eviction
and criminal record information included in tenant-
screening reports accurately reflected the
disposition, offense name, and offense type and to
prevent the inclusion of multiple entries for the
same criminal or eviction action in the same
report).
50
See, e.g., Consent Order, In re Gen. Info. Servs.,
Inc., 2015–CFPB–0028 (Oct. 29, 2015), https://
files.consumerfinance.gov/f/201510_cfpb_consent-
order_general-information-service-inc.pdf (alleging
that an employment background screening
company violated FCRA section 607(b) by, among
other things, failing to use reasonable procedures to
prevent the inclusion of expunged criminal records
in consumer reports).
51
See, e.g., 15 U.S.C. 1681s–2; 12 CFR 1022.40–
.43.
52
CARES Act section 4024, 134 Stat. 492–94.
53
15 U.S.C. 1681i, 1681s–2; 12 CFR 1022.43.
an eviction filing.
42
Concerns about lack
of access to rental housing are further
heightened during the continuing
pandemic. For example, a basis for the
CDC’s eviction moratorium is the
concern that individuals moving into
close quarters in congregate or shared
living settings, such as homeless
shelters, puts individuals at higher risk
of contracting COVID–19.
43
CRAs and
debt collectors and landlords that
furnish information for inclusion in
consumer reports have important
obligations under the FCRA and
Regulation V relating to the accuracy of
information included in consumer
reports,
44
and the Bureau urges CRAs
and furnishers to ensure they are
complying with these obligations.
Concerns about the accuracy of
information included in consumer
reports are long-standing,
45
and the
Bureau is especially concerned about
the effects of these accuracy problems in
light of the economic and public health
impacts of COVID–19. The Bureau has
received consumer complaints alleging
that inaccuracies in tenant-screening
reports have caused landlords to deny
some consumers rental housing and
charge others higher security deposits
than they would have otherwise.
46
The
Bureau is particularly concerned that
the procedures that some tenant-
screening companies use to match
public records and other rental
information to specific consumers may
create a high risk that inaccurate data
will be included in tenant-screening
reports,
47
a risk that may be further
heightened by increased volumes of
negative rental information resulting
from the pandemic. The risk of
mismatching may be greater among
Hispanic, Black, and Asian individuals
because there is less surname diversity
than among the white population.
48
In addition, the Bureau is concerned
that tenant-screening companies may
report information, such as information
about an eviction filing, in a consumer
report without having reasonable
procedures to report information about
the disposition of the eviction filing or
to prevent the inclusion of multiple
entries for the same eviction action in
the same consumer report.
49
The Bureau
is also concerned that tenant-screening
companies may lack reasonable
procedures to exclude from consumer
reports eviction information that has
been sealed or expunged.
50
CRAs frequently include rental
information, such as eviction records,
that comes from public records;
landlords and debt collectors also
furnish information about rental
housing payments and debts to CRAs.
The FCRA and Regulation V set forth
important requirements for furnishers
concerning both the accuracy of
information furnished and the handling
of consumer disputes related to the
accuracy of information included in
consumer reports.
51
The Bureau is
concerned that existing accuracy
problems related to the furnishing of
rental information may be exacerbated
by the anticipated increase in the
amount of negative rental information
furnished.
For example, furnishers may fail to
account for COVID–19-related aid or
protections when reporting overdue rent
amounts. In addition to providing a
temporary moratorium on eviction
filings for tenants in certain rental
properties with Federal assistance or
federally related financing, the CARES
Act prohibited landlords of these rental
properties from charging fees, penalties,
or other charges related to the
nonpayment of rent during the Act’s
eviction moratorium.
52
State and local
laws may also in some cases prohibit
landlords from charging certain late fees
or penalties to renters. The Bureau is
concerned that furnishers may include
prohibited penalties or fees when
reporting rental arrearages. In addition,
under many rental assistance programs,
funds to make rental payments may be
provided to landlords to pay the rent of
specific tenants who are eligible for the
program. If furnishers providing rental
information do not appropriately
account for funds received pursuant to
these programs and fail to offset overdue
rent amounts, this could lead to
inaccuracies in consumer reports.
Finally, the dispute-resolution
obligations the FCRA and Regulation V
impose on CRAs and furnishers are also
critical to ensuring that consumer
reports are accurate. CRAs and
furnishers must conduct reasonable and
timely investigations of consumer
disputes to verify the accuracy of the
information furnished.
53
An increase in
the amount of negative rental
information in public records and
furnished to CRAs is likely to lead to a
corresponding increase in dispute
volumes. A reasonable and timely
investigation of a consumer dispute is
critical to mitigating the harmful impact
that inaccurate negative information in
a consumer report may have on the
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35599
Federal Register / Vol. 86, No. 127 / Wednesday, July 7, 2021 / Rules and Regulations
54
See, e.g., Fed. Trade Comm’n, 40 Years of
Experience with the Fair Credit Reporting Act: An
FTC Staff Report with Summary of Interpretations
67 (July 2011), https://www.ftc.gov/sites/default/
files/documents/reports/40-years-experience-fair-
credit-reporting-act-ftc-staff-report-summary-
interpretations/110720fcrareport.pdf (noting that
‘‘when a CRA learns or should reasonably be aware
of errors in its reports that may indicate systematic
problems (by virtue of information from consumers,
report users, from periodic review of its reporting
system, or otherwise), it must review its procedures
for assuring accuracy and take any necessary steps
to avoid future problems’’).
55
5 U.S.C. 553(b).
56
5 U.S.C. 603(a), 604(a).
57
44 U.S.C. 3501 et seq.
consumer. Moreover, proper handling of
disputes not only ensures that
inaccuracies in the disputing
consumer’s report are resolved, it also
facilitates CRA and furnisher
identification of systemic problems
related to their consumer reporting and
furnishing practices.
54
II. Compliance Guidance
As pandemic-related government
interventions aimed at protecting
renters begin to expire, the Bureau will
continue to look carefully at consumer
reporting agencies’ and furnishers’
compliance with their FCRA accuracy
obligations with respect to rental
information. CRAs and furnishers
should take immediate steps to ensure
they are fulfilling their obligations
under the law. If the Bureau determines
that a CRA or furnisher has engaged in
any acts or practices that violate the
FCRA, Regulation V, or other Federal
consumer financial laws, the Bureau
will take appropriate enforcement
action to address violations and seek all
appropriate corrective measures,
including remediation of harm to
consumers.
The Bureau plans to pay particular
attention to the areas outlined below.
For CRAs Reporting Rental Information
1. Whether CRAs are reporting
accurate rental information.
2. Whether CRAs are using a
sufficient number of identifiers to match
consumer report information to the
consumer who is the subject of the
report, including whether CRAs are
using name-matching procedures or
limited identifiers likely to heighten the
risk of inaccurate matching.
3. Whether CRAs are reporting
eviction information that is inaccurate,
incomplete, or misleading (such as may
result from a failure to have reasonable
procedures to report information about
the disposition of an eviction filing, to
prevent the inclusion of multiple entries
for the same eviction action in the same
consumer report, or to prevent the
inclusion of eviction information that
has been sealed or expunged).
4. Whether CRAs are complying with
their obligations to investigate disputed
information in a consumer report,
including whether they are conducting
timely and reasonable investigations.
For Furnishers Providing Rental
Information
1. Whether furnishers are providing
accurate rental information to CRAs.
2. Whether furnishers are providing
information about rental arrearages that
include amounts that were already paid
on behalf of a tenant through a
government grant or relief program,
such as the Emergency Rental
Assistance programs.
3. Whether furnishers are providing
information about rental arrearages that
include fees or penalties that CARES
Act section 4024(b) or other laws
prohibit charging.
4. Whether furnishers are complying
with their obligations to investigate
disputed information in a consumer
report, including whether they are
conducting timely and reasonable
investigations.
III. Conclusion
The Bureau issues this Bulletin to
highlight that the Bureau will hold
CRAs and furnishers accountable if they
do not comply with their accuracy and
dispute obligations under the FCRA and
Regulation V with respect to rental
information.
IV. Regulatory Requirements
This Bulletin constitutes a general
statement of policy exempt from the
notice and comment rulemaking
requirements of the Administrative
Procedure Act.
55
It summarizes existing
legal requirements and articulates
considerations relevant to the Bureau’s
exercise of its enforcement discretion
for institutions under its jurisdiction. It
does not impose any legal requirements
on external parties, nor does it create or
confer any substantive rights on external
parties that could be enforceable in any
administrative or civil proceeding.
Because no notice of proposed
rulemaking is required in issuing this
Bulletin, the Regulatory Flexibility Act
also does not require an initial or final
regulatory flexibility analysis.
56
The
Bureau has also determined that the
issuance of this Bulletin does not
impose any new or revise any existing
recordkeeping, reporting, or disclosure
requirements on covered entities or
members of the public that would be
collections of information requiring
approval by the Office of Management
and Budget under the Paperwork
Reduction Act of 1995.
57
Dated: July 1, 2021.
David Uejio,
Acting Director, Bureau of Consumer
Financial Protection.
[FR Doc. 2021–14459 Filed 7–6–21; 8:45 am]
BILLING CODE 4810–AM–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2019–0293; Product
Identifier 2017–SW–052–AD; Amendment
39–21610; AD 2021–13–05]
RIN 2120–AA64
Airworthiness Directives; Airbus
Helicopters Deutschland GmbH
Helicopters
AGENCY
: Federal Aviation
Administration (FAA), DOT.
ACTION
: Final rule.
SUMMARY
: The FAA is adopting a new
airworthiness directive (AD) for Airbus
Helicopters Deutschland GmbH (Airbus
Helicopters) Model EC135P1, EC135P2,
EC135P2+, EC135P3, EC135T1,
EC135T2, EC135T2+, and EC135T3
helicopters. This AD requires modifying
the tail rotor (T/R) control installation,
a functional test, and corrective actions
as necessary. This AD was prompted by
cases of insufficient clearance between
a certain T/R control bearing connection
and the helicopter structure, which
were detected on the production line.
The FAA is issuing this AD to address
the unsafe condition on these products.
DATES
: This AD is effective August 11,
2021.
The Director of the Federal Register
approved the incorporation by reference
of a certain document listed in this AD
as of August 11, 2021.
ADDRESSES
: For service information
identified in this final rule, contact
Airbus Helicopters, 2701 North Forum
Drive, Grand Prairie, TX 75052;
telephone 972–641–0000 or 800–232–
0323; fax 972–641–3775; or at https://
www.airbus.com/helicopters/services/
technical-support.html. You may view
the referenced service information at the
FAA, Office of the Regional Counsel,
Southwest Region, 10101 Hillwood
Pkwy., Room 6N–321, Fort Worth, TX
76177. Service information that is
incorporated by reference is also
available at https://www.regulations.gov
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