Free Adverse-Action Notice (Landlord)
Federal FCRA §615 (15 USC §1681m) adverse-action notice. Required when a rental decision (denial, conditional approval, higher rent, larger deposit, cosigner requirement) is based in whole or in part on a consumer report. Must include CRA name + contact, dispute rights, and free-report rights.
Free Adverse-Action Notice (Landlord) — overview
A Adverse-Action Notice (Landlord) is the federal FCRA §615 adverse-action notice required when a tenant-screening decision was based in whole or in part on a consumer report. The notice must identify the Consumer Reporting Agency and disclose the applicant’s right to dispute the report.
Generate the Letter
Complete the fields below to generate an FCRA-compliant adverse-action notice. The notice must include: (1) the nature of the adverse action; (2) the name, address, and phone of the Consumer Reporting Agency (CRA) that furnished the report; (3) a statement that the CRA did not make the decision; (4) the applicant’s right to dispute and obtain a free copy of the report.
When this notice is required: Any time a rental decision is based in whole or in part on a consumer report — even partially. This includes denial, cosigner requirement, larger deposit, higher rent, or any other adverse condition imposed because of report information.
1. Letter Header (From / To)
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⚠ FCRA §615 Adverse-Action Requirements (15 USC §1681m)
When a landlord takes any adverse action (denial, conditional approval, higher rent, larger deposit, cosigner requirement) based in whole or in part on a consumer report, the FCRA requires: (1) notice of the adverse action; (2) name, address, telephone of the Consumer Reporting Agency (CRA) that furnished the report; (3) statement that the CRA did not make the decision and cannot explain it; (4) notice of the applicant’s right to dispute and obtain a free copy of the report within 60 days. Failure exposes the landlord to FCRA §616/§617 statutory damages ($100-$1,000 per violation) plus actual damages and attorney fees.
3. Signature
About the Adverse-Action Notice (Landlord)
FCRA §615 (15 USC §1681m) requires landlords to provide adverse-action notice whenever a rental decision is based in whole or in part on information from a consumer report. “Adverse action” is broadly defined and includes not just outright denial, but ANY rental term less favorable to the applicant than would otherwise have applied — including conditional approval requiring a cosigner, larger security deposit, first + last month prepayment, higher rent, or reduced lease term. The notice must include: (1) the name, address, and phone of the Consumer Reporting Agency (CRA) that furnished the report; (2) a statement that the CRA did not make the decision and cannot provide the specific reasons; (3) the applicant’s right to obtain a free copy of the report from the CRA within 60 days; (4) the applicant’s right to dispute the accuracy or completeness of the report directly with the CRA. If a credit score was used, additional credit-score disclosures apply. Violations carry statutory damages of $100-$1,000 per violation plus actual damages and reasonable attorney fees under FCRA §616/§617. State equivalents (California CCRAA Civ. Code §1785, New York GBL §380, Illinois, Massachusetts, others) may impose additional requirements.
Key Requirements
- Federal statute: FCRA §615 (15 USC §1681m)
- Required for ANY adverse action based in whole or in part on a consumer report
- Includes: denial, cosigner requirement, larger deposit, higher rent, reduced term
- Must include CRA name + address + phone + statement that CRA didn’t decide
- Applicant has right to free copy from CRA within 60 days
- Applicant has right to dispute accuracy/completeness with CRA
- Statutory damages: $100-$1,000 per violation + actual + attorney fees
Common Mistakes
- Not sending adverse-action notice for conditional approvals (still an adverse action)
- Failing to name the specific CRA (“a credit agency” is insufficient)
- Stating specific reasons in the notice (CRA cannot explain – landlord cannot either via this notice)
- Missing the 60-day free-copy right disclosure
- Missing the dispute-rights disclosure
- Not retaining a copy in the applicant file
- Delaying notice — should be sent promptly after the decision
Best Practices
- Send promptly — “promptly” is fact-specific; same-day to next-business-day is best practice
- Send by certified mail with return receipt for proof of delivery
- Retain copy in applicant file for 5 years (FCRA statute of limitations)
- Document the basis in your internal file (not in the notice itself)
- Use the same template for consistency across decisions
- State equivalents may require additional disclosures (CA, NY, etc.)
Make screening decisions with full information
An adverse-action notice is only as defensible as the underlying screening report. Tenant Screening Background Check has been verifying renters since 2004 — credit, eviction filings, criminal background, and employment — with proper FCRA permissible-purpose documentation built in.
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⚖ Legal Disclaimer
This letter template is provided for general informational purposes only and does not constitute legal advice. Federal FCRA (15 USC §1681 et seq.) requirements apply to all adverse-action notices based on consumer reports. State equivalents (CA CCRAA/ICRAA, NY GBL §380, others) impose additional requirements in some jurisdictions. For FCRA guidance, visit FTC FCRA and CFPB. Consult a qualified attorney before relying on this template for any adverse-action decision.
