FTC alleges tenant screening company violated the FCRA’s requirements, including by reporting duplicate records and by failing to disclose sources of data

Washington D.C. / CRWE PRESS RELEASE / July 9, 2026 - RentGrow, a provider of consumer reports for tenant screening, will be required to pay $2.25 million to settle Federal Trade Commission allegations that the company violated the Fair Credit Reporting Act (FCRA), including by failing to use reasonable procedures to ensure the accuracy of its reports, and the FTC Act.

The FCRA requires consumer reporting agencies (CRAs) to maintain reasonable procedures to assure the maximum possible accuracy of the information they include in background screening reports, disclose the sources of information used to compile a background screening report when a consumer requests it and take certain steps when a consumer disputes the completeness or accuracy of information in their background screening report.

A complaint, filed by the Department of Justice upon notification and referral from the FTC, alleged that Massachusetts-based RentGrow Inc. is a CRA since it compiles information it obtains from a variety of sources into background screening reports that it sells to landlords and property managers as tenant screening reports. As a CRA, RentGrow is therefore subject to the requirements of the FCRA, and the complaint alleged that RentGrow failed to comply with the FCRA. The complaint also alleged that RentGrow violated the FTC Act by misleading consumers about the outcomes of their disputes.

“Inaccurate background reports can have a real impact on people by affecting their ability to obtain housing or a job,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Companies that provide background reports have a responsibility under the law to take reasonable steps to ensure the accuracy of those reports and to comply with other requirements of the FCRA.”

The complaint alleged that RentGrow violated the FCRA in several ways by:

• Failing to maintain reasonable procedures to ensure the maximum possible accuracy of its consumer reports by not preventing the inclusion of duplicate case records and multiple entries for the same criminal or eviction action on tenant screening reports, which gave the false impression that applicants had more criminal convictions or had been sued for eviction more times than they actually had. Even when RentGrow’s vendor provided the information accurately, RentGrow displayed the data in its reports such that some proceedings appeared multiple times. The FTC alleged the company was aware of these problems but failed to implement reasonable procedures to address the issue until the FTC began investigating the company.
• Failing to disclose all the information and sources of data included in its consumer reports when requested by consumers, which made it difficult for consumers to dispute inaccurate data in their reports. For example, the complaint alleged that the company did not disclose to consumers who requested such information that Lexis-Nexis Accurint was a source of additional historical address information and middle names for some consumers, even though RentGrow would then use those historical addresses and middle names to match criminal and eviction records to consumers.
• Failing to comply with requirements related to consumer disputes of information in tenant screening reports. When a consumer disputes the accuracy of information in a consumer report, CRAs are required to follow certain procedures to resolve the dispute.  They are not permitted to label disputes as “invalid” and fail to take any further action, as the complaint alleged RentGrow did when handling disputes related to consumer disputes about duplicate records in their reports and disputes concerning changes to records that occurred after a tenant screening report was prepared.

The complaint also alleged that RentGrow violated the FTC Act by misleading some consumers about the outcome of their disputes. The complaint alleged that in some cases, RentGrow told consumers who successfully disputed information in their tenant screening report—resulting in information being modified or deleted—that RentGrow had notified the property manager of the outcome of the dispute, but RentGrow instead told those property owners that there was no change.

Under the proposed order also filed by the DOJ, RentGrow will pay a $2.25 million monetary penalty. The company also will be prohibited from failing to maintain reasonable procedures to ensure the maximum possible accuracy of the information in its consumer reports, including procedures to prevent the inclusion of multiple records for the same criminal or eviction proceedings and from failing to comply with other FCRA requirements. In addition, RentGrow is also prohibited from misrepresenting that it provides updated screening reports to landlords and property managers following a successful dispute by a consumer.

The Commission vote to authorize the staff to refer the complaint to the DOJ and to approve the stipulated order was 2-0. The DOJ filed the complaint and proposed order on behalf of the Commission in the U.S. District Court for the District of Columbia.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. Stipulated orders have the force of law when approved and signed by the District Court judge.

The lead staffers on this matter include Whitney Moore, Jamie Hine and Kamay Lafalaise in the FTC’s Bureau of Consumer Protection.

The Federal Trade Commission works to promote competition and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

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Source: Federal Trade Commission