RentGrow to Pay $2.25 Million Penalty Over Alleged Tenant Screening Violations
WASHINGTON – RentGrow Inc., a consumer reporting company that provides tenant screening reports to landlords and property managers, has agreed to pay a $2.25 million civil penalty and comply with an injunction to resolve allegations that it violated federal consumer protection laws, the Justice Department announced today.
The stipulated order, entered by a federal court, resolves allegations that RentGrow violated the Fair Credit Reporting Act and the FTC Act in connection with background reports it furnishes to assist in screening tenants for rental housing.
“Tenant screening reports can significantly affect the outcome of a housing application. Consumers deserve to know that the information contained in those reports is accurate, that the reporting is transparent, and that they have a meaningful opportunity to address information that may affect them,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Justice Department is committed to ensuring that companies that collect and provide consumer information follow the law and maintain practices that support fair and informed housing decisions.”
In a complaint filed in the U.S. District Court for the District of Columbia, the government alleged that RentGrow failed to maintain reasonable procedures to ensure maximum possible accuracy of the information in its tenant screening reports. The company also allegedly failed to disclose to consumers upon request the information contained in those reports and the sources of that information, and failed to comply with required procedures when a consumer disputed the accuracy of a report.
The government further alleged that RentGrow violated the FTC Act’s prohibition on deceptive business practices by misrepresenting to tenant applicants that corrections to or removals of inaccurate information were reported to landlords and property managers upon successful dispute of their report.
The stipulated order requires RentGrow to pay the $2.25 million civil penalty and imposes an injunction prohibiting the alleged misconduct. The company is also required to comply with related reporting, monitoring, and recordkeeping requirements.
Landlord Sexually Harassed Tenant, Then Left Her Family in Freezing Home, Federal Lawsuit Alleges
WASHINGTON – The Justice Department has filed a lawsuit against a Pennsylvania landlord for sexually harassing a female tenant and retaliating against her when she refused his advances, federal officials announced today.
The lawsuit, filed in the U.S. District Court for the Middle District of Pennsylvania, alleges that Venkatachalam Mani, a landlord in State College, made sexual advances toward a female tenant, including unwelcome sexual touching. After the tenant rejected his advances, Mani allegedly failed to respond to her repeated requests for maintenance, including repairing a broken furnace in the middle of winter that eventually caught fire.
“The landlord failed to fix a tenant’s furnace despite freezing temperatures because the female tenant refused his sexual advances, forcing her family to move out with no other place to live,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This conduct is illegal. The Justice Department will uphold the rights of female tenants to housing without the threat of sexual harassment by a landlord.”
The lawsuit alleges that Mani violated the Fair Housing Act through his conduct. The case was referred to the Department after the U.S. Department of Housing and Urban Development received a complaint, completed an investigation, and issued a charge of discrimination.
“Attempts to exploit tenants for sexual favors, sexual assault, and retaliation by landlords will never be tolerated in the Middle District of Pennsylvania,” said U.S. Attorney Brian D. Miller for the Middle District of Pennsylvania.
The lawsuit seeks monetary damages for the tenant and her children and a court order barring future discrimination.
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