January 26, 2021

Volume XI, Number 26


January 25, 2021

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FTC Flexes FCRA Muscle with $3M Settlement

The FTC has been accused of failing to “meaningfully enforce” the FCRA,[1] but on October 16, 2018, it announced a $3 million settlement with RealPage Inc. (“RealPage”), which it billed the “largest civil penalty the FTC has obtained against a background screening company.”

According to the FTC press release (here), RealPage is a Texas consumer reporting agency focused on tenant screening.  The FTC brought charges alleging that the company failed to take reasonable steps to ensure the accuracy of tenant screening information that it provided to landlords and property managers. More specifically, the FTC alleged that RealPage used broad criteria to match applicants to criminal records and only applied limited filters to the results, with no policies or procedures to assess the accuracy of those results. The FTC filed the complaint and final order in the U.S. District Court for the Northern District of Texas, Dallas Division.

FCRA § 607(b) reads:

(b) Accuracy of report. Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.

According to the FTC, in addition to the civil penalty, the proposed settlement also requires RealPage to maintain reasonable procedures to assure the maximum possible accuracy of the information it includes about individuals in its consumer reports. In addition, RealPage is subject to compliance and reporting requirements.

The FTC is not the only sheriff in town.  It shares enforcement responsibility with the BCFP (formerly CFPB).  Of course, the FCRA is also enforced by private litigants.

[1] Austin H. Krist, Large-Scale Enforcement Of The Fair Credit Reporting Act And The Role Of State Attorneys General, Columbia Law Review, Vol. 115, No. 8.

Copyright © 2020 Womble Bond Dickinson (US) LLP All Rights Reserved.National Law Review, Volume VIII, Number 297



About this Author

John Hawk Attorney Womble Bond Litigator

John Hawk is a skilled litigator with over a decade of experience serving the complex and diverse litigation needs of Fortune 500 companies and smaller lenders. He focuses his practice on consumer finance, lender liability and insurance.

Specifically, John routinely defends cases brought pursuant to ERISA, FCRA, TCPA and FDCPA. His clients include life and disability insurance companies, banks and other lenders, and mortgage servicers.

John’s experience includes frequent appearances in state and federal courts, including the South Carolina Court of Appeals and the Supreme...