Adverse Action Notice: Your Rights When You're Denied

What this means

“Adverse action” is the legal term for a landlord denying your application, requiring a higher deposit, or offering less favorable terms because of information in a tenant-screening report. Whenever a report plays even a partial role, federal law gives you specific rights that apply regardless of which state you're in.

The adverse action notice must identify the tenant-screening or consumer reporting company that supplied the report, including how to contact it. It must also tell you that you have the right to a free copy of that report if you request it within a set window, and that you have the right to dispute any information in it that's inaccurate or incomplete.

This matters because screening reports are compiled from many sources and errors are common — a mixed-up identity, an outdated balance, an eviction case that was actually dismissed. A free copy lets you see exactly what a landlord saw, and a dispute puts the burden on the reporting company to investigate and correct or remove what's wrong.

If you were denied and never got this notice, it's reasonable to ask the landlord directly whether a screening report was used. If a screening company won't cooperate with a legitimate dispute, the Consumer Financial Protection Bureau (CFPB) is the federal agency that handles these complaints. Renter Shield can help you keep track of what you've asked and what you've received.