๐Ÿ“ฌ Tenant Screening Letters: Notice of Conditional Acceptance (Based on Credit Report) Conditional – Cosigner Adverse-Action Notice Acceptance Letter

Free Notice of Conditional Acceptance (Based on Credit Report)

Conditional acceptance letter when imposing conditions (larger deposit, cosigner, prepayment, higher rent, reduced term) based on the consumer credit report. Combines the conditional terms with the FCRA ยง615 adverse-action disclosures. Conditional approval IS adverse action under FCRA when based on consumer report.

Conditional – Credit FCRA ยง615 (cond. approval) Landlord Letter Free PDF 2026 Edition
Free Notice of Conditional Acceptance (Based on Credit Report) โ€” overview
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Free Notice of Conditional Acceptance (Based on Credit Report) โ€” overview

๐Ÿ“ฌWHAT THIS LETTER DOES: Conditional acceptance letter with full FCRA ยง615 disclosures. Used when imposing conditions based on credit report.
๐Ÿ“‹TIMING / RECORD-KEEPING: Send promptly. Set clear acceptance deadline. Retain copy in applicant file 5 years.

A Notice of Conditional Acceptance (Based on Credit Report) is a conditional acceptance letter combining offer terms (larger deposit, cosigner, higher rent, etc.) with FCRA ยง615 adverse-action disclosures, used when conditions are imposed based on a credit report.

Generate the Letter

This letter extends a conditional offer subject to specific conditions (larger deposit, cosigner, first + last month prepayment, higher rent, reduced lease term) AND provides the FCRA ยง615 disclosures required when conditional approval is based on a consumer report.

โ„น

Conditional approval triggers FCRA: Many landlords mistakenly believe FCRA ยง615 only applies to denials. It applies to ANY adverse action โ€” including conditional approvals based on a consumer report. This letter combines the conditional terms with the required FCRA disclosures in a single document.

๐Ÿ‘ฅ1. Letter Header (From / To)

From (Landlord / Property Manager)
To (Applicant)

๐Ÿ“2. Letter Body

โš  Conditional approval based on credit = adverse action under FCRA ยง615

Conditional approval (larger deposit, higher rent, cosigner, prepayment, reduced term) IS an adverse action under FCRA ยง615 when based in whole or in part on a consumer credit report. You must include the CRA disclosure, dispute rights, and free-report rights. This letter combines the conditional-approval terms with the required FCRA disclosures.

Conditional Approval Details
Conditions Imposed (check all that apply)
FCRA ยง615 Required Disclosures

โœ3. Signature

About the Notice of Conditional Acceptance (Based on Credit Report)

Notice of conditional acceptance based on a credit report is required when a landlord extends a rental offer with conditions less favorable than would have been offered to an applicant with stronger credit. Under FCRA ยง615 (15 USC ยง1681m), this conditional approval IS an adverse action โ€” many landlords miss this point. The letter must include: (1) clear statement of the conditions imposed (larger deposit, cosigner, first + last month, higher rent, reduced term); (2) the FCRA ยง615 disclosures (CRA name, address, phone; statement CRA didn’t decide; right to free copy within 60 days; right to dispute); (3) if a credit score was used, the credit-score disclosures (numeric score, range, key factors, date, CRA). State equivalents may apply: California CCRAA Civ. Code ยง1785, New York GBL ยง380, others. State security-deposit caps also apply: California allows up to 2 months (unfurnished) / 3 months (furnished); New York HSTPA caps at 1 month; Massachusetts caps at 1 month + last month; many states have caps. Imposing a deposit above the state cap as a “condition” violates state law regardless of the conditional-approval framing.

Key Requirements

  • Conditional approval based on consumer report = adverse action under FCRA ยง615
  • Combined letter: conditional terms + FCRA disclosures
  • Common conditions: larger deposit, cosigner, first + last, higher rent, reduced term
  • Credit score disclosure: numeric score + range + key factors + date + CRA
  • State SD caps apply: CA 2 mo unfurn / 3 mo furn; NY 1 mo; MA 1 mo + last; etc.
  • State equivalents: CA CCRAA, NY GBL ยง380, others

Common Mistakes

  • Treating conditional approval as not requiring FCRA disclosures (it does)
  • Imposing deposit above state cap as “condition” (state law violation)
  • Missing credit score disclosure when credit score was used
  • Vague conditions (specify amounts and deadlines)
  • No acceptance deadline
  • Not retaining copy in applicant file
  • Failing to apply conditions uniformly across similarly-situated applicants

Best Practices

  • Specify each condition precisely with amounts and deadlines
  • Verify state SD cap before imposing larger-deposit condition
  • Include all FCRA disclosures including credit-score data if used
  • Set acceptance deadline 7-14 days
  • Apply conditions uniformly across applicants to avoid discrimination claims
  • Document the basis in your internal file (not the letter)
  • Retain copy for 5+ years

Frequently Asked Questions

Is a conditional acceptance an adverse action under the FCRA?

Most likely yes, and the cautious practice is to treat it as one. Section 1681a(k)(1)(B)(iv) of Title 15 defines adverse action to include an action or determination made in connection with an application made by, or a transaction initiated by, any consumer that is adverse to the interests of the consumer. A rental application is initiated by the applicant, and demanding a larger deposit or a co-signer because of the report leaves the applicant worse off than the terms requested. The statute sets no tenancy-specific rule and no threshold for how much less favorable a term must be, so its own words do not settle the point cleanly. Because the catch-all is broad, most landlords send the notice.

What exactly does 15 U.S.C. ยง 1681m(a) require the notice to contain?

Four things, when the action rests in whole or in part on a consumer report. First, oral, written, or electronic notice of the adverse action. Second, if a numerical credit score was used, written or electronic disclosure of that score plus the information in ยง 1681g(f)(1)(B) through (E). Third, the name, address, and telephone number of the consumer reporting agency that furnished the report, including its toll-free number if the agency maintains files on consumers nationwide, together with a statement that the agency did not make the decision and cannot give the specific reasons. Fourth, notice of the right to a free copy of the report from that agency, with an indication of the 60-day period under ยง 1681j, and to dispute its accuracy under ยง 1681i.

Do I have to name the screening company in the notice?

Yes, if a consumer report was part of the decision. Section 1681m(a)(3)(A) requires the name, address, and telephone number of the consumer reporting agency that furnished the report, plus a toll-free number if that agency compiles files nationwide. Section 1681m(a)(3)(B) requires a statement that the agency did not make the decision and is unable to tell the applicant the specific reasons it was taken. Name the agency that supplied the report, not your management company and not yourself. This describes what the statute requires; completing any particular form does not by itself establish that a landlord has met these duties.

Do I have to explain why I required a co-signer or a larger deposit?

The FCRA does not require it. Section 1681m(a) requires you to identify the reporting agency and to state that the agency did not make the decision and cannot supply the specific reasons. Nothing in ยง 1681m(a) obliges you to give your own reasons. The statement of specific reasons obligation lives in the Equal Credit Opportunity Act at 15 U.S.C. ยง 1691(d), which is written for creditors and applicants for credit, and a residential tenancy is generally not an extension of credit. As a matter of practice many landlords do explain the condition anyway, and some state and local rules require more, so this varies.

Does the risk-based pricing notice in ยง 1681m(h) apply to a rental?

No, not on the face of the statute. Section 1681m(h)(1) is triggered when a person uses a consumer report in connection with an application for, or the grant or extension of, credit on material terms that are materially less favorable than the most favorable terms available to a substantial proportion of consumers. Its subject is credit, not tenancy. It is also worth reading ยง 1681m(h)(4), which says a person required to give a notice under subsection (a) cannot satisfy that requirement with an (h) notice. So the notice that goes out with a conditional rental offer is the ยง 1681m(a) adverse action notice.

Does ยง 1681m(b) apply if I conditioned approval on a landlord reference call?

Read plainly, no. Section 1681m(b)(1) reaches only credit for personal, family, or household purposes that is denied, or whose charge is increased, because of information from a person other than a consumer reporting agency. Its trigger is a credit transaction, not a tenancy. Section 1681m(b)(2) covers information furnished by a corporate affiliate and by its own terms reaches only adverse actions described in ยง 1681a(k)(1)(A) taken in a consumer-initiated transaction, or those in ยง 1681a(k)(1)(B)(i) or (ii), which are insurance and employment. Neither one reaches a rental condition based on a reference call. Section 1681m(a) applies only when a consumer report was part of the decision.

How soon must I send it, and can I send it by email?

Section 1681m(a) does not name a deadline for a tenancy decision, so landlords normally send the notice at the same time as the conditional offer, which keeps the timing defensible and the record clean. On delivery, the statute is specific: the notice of the action itself, the agency identification, and the notice of file and dispute rights may each be given orally, in writing, or electronically. The credit score disclosure under ยง 1681m(a)(2) is the exception and must be written or electronic, never oral alone. Whatever channel you pick, keep a dated copy of what was sent.

Can I attach any condition I want to an approval?

No, and this is where the rules stop being national. The FCRA governs the notice you send, not what condition you may impose. Separate law limits the condition itself. Many states cap security deposits or restrict who may be required as a guarantor, several states and cities restrict how criminal history may be used in housing decisions, and a number of localities run fair chance ordinances with their own notice and timing steps. Federal fair housing law also constrains conditions applied unevenly. What is allowed varies by state and by city, so check your own jurisdiction before setting a condition.

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โš– Legal Disclaimer

This letter template is provided for general informational purposes only and does not constitute legal advice. Federal FCRA (15 USC ยง1681 et seq.) requirements apply to all adverse-action notices based on consumer reports. State equivalents (CA CCRAA/ICRAA, NY GBL ยง380, 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.