Bill Summary
The "End Tenant Credit Screening Act" is a proposed legislation aimed at amending the Fair Credit Reporting Act to prevent landlords and housing providers from using consumer credit checks when evaluating prospective and current tenants. This act seeks to eliminate the reliance on credit reports that assess an individual's creditworthiness, credit standing, or credit capacity for rental housing decisions.
Key provisions of the bill include:
1. **Prohibition on Credit Checks**: It explicitly prohibits the use of consumer reports that contain credit-related information for tenant screening purposes, meaning that landlords cannot use credit history to decide whether to approve a rental application or determine lease terms.
2. **Definitions**: The act defines 'tenant screening purposes' as the evaluation of a consumer for rental housing and clarifies who qualifies as a 'housing provider.'
3. **Consent Irrelevance**: Even if a consumer consents to the use of their credit report for screening, the prohibition still applies, with an exception for reports used in the reconsideration of previously denied applications.
4. **Reconsideration Process**: The bill outlines a process allowing housing providers to reconsider rental applications on an individual basis if they have been previously rejected.
Overall, the legislation aims to promote fairer housing practices by reducing barriers that credit scores can create for potential tenants.
Possible Impacts
The "End Tenant Credit Screening Act" could affect people in several ways:
1. **Increased Access to Housing**: By prohibiting the use of credit checks in tenant screening, the legislation could make it easier for individuals with poor credit histories or low credit scores to secure rental housing. This is particularly beneficial for marginalized groups, such as low-income individuals, recent immigrants, or those recovering from financial hardships, as it removes a significant barrier that often leads to housing discrimination.
2. **Changes in Landlord Screening Practices**: Housing providers may need to adapt their tenant screening processes, relying on alternative methods to evaluate potential tenants. This could lead to the adoption of more holistic approaches, such as considering rental history, personal references, or income verification. However, it may also lead to landlords becoming more cautious and potentially increasing security deposits or rental prices to mitigate perceived risks.
3. **Impact on Tenant Rights and Fairness**: The legislation promotes fairness in housing by reducing the reliance on credit scores, which may not accurately reflect a tenant's ability to pay rent. This could help to create a more equitable rental market, reducing the chances of unfair denials based on credit history alone. Additionally, it emphasizes the importance of individualized reconsideration processes for denied applications, ensuring that tenants have a chance to explain their circumstances and potentially overturn a denial.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4369 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 4369
To amend the Fair Credit Reporting Act to prohibit the use of consumer
credit checks against prospective and current tenants for the purposes
of making adverse rental housing decisions.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 14, 2025
Mr. Frost introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Fair Credit Reporting Act to prohibit the use of consumer
credit checks against prospective and current tenants for the purposes
of making adverse rental housing decisions.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``End Tenant Credit Screening Act''.
SEC. 2. USE OF CREDIT CHECKS PROHIBITED FOR TENANT SCREENING PURPOSES.
Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) is
amended by inserting after subsection (g) the following:
``(h) Use of Certain Consumer Reports Prohibited for Tenant
Screening Purposes.--
``(1) Definitions.--For purposes of this section:
``(A) The term `tenant screening purposes' when
used in connection with a consumer report means a
report used for the purpose of evaluating a consumer
for rental housing, including whether to approve a
consumer's rental housing application, determining the
consumer's security deposit or other terms of the
consumer's lease, or retention a tenant.
``(B) The term `housing provider' means any person
that leases a unit of residential real estate to an
individual.
``(2) General prohibition.--Except as provided in paragraph
(3), a person, including a prospective or current housing
provider, may not use a consumer report or investigative
consumer report, or cause a consumer report or investigative
consumer report to be procured, with respect to any consumer
for tenant screening purposes where any information contained
in the report bears on the creditworthiness, credit standing or
credit capacity of the consumer.
``(3) Consent irrelevant.--The prohibition described in
paragraph (2) shall apply even if the consumer consents or
otherwise authorizes the procurement or use of a consumer
report for tenant screening purposes, except for a report
provided or caused to be provided to the housing provider for
reconsideration of denial.
``(4) Reconsideration of denial.--The term
``reconsideration of denial'' means any procedure or process by
which a housing provider reconsiders, on an individualized
basis, an application for rental housing that the housing
provider has previously rejected after bona fide
consideration.''.
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