February 26, 2004
AARP has filed a a class action lawsuit against a tenant screening company for allegedly providing inaccurate and incomplete tenant screening reports to landlords. The suit against First American Registry, Inc., seeks an injunction to stop the disputed practice.
"Ensuring that screening reports are accurate and fair for all potential tenants is critical," said Lois Aronstein, New York State director for AARP. "The success of this lawsuit will help to ensure that no one is turned away from rental housing for the wrong reasons."
On behalf of tenants harmed by these practices, AARP attorneys allege that First American Registry provides inaccurate and misleading information about residential tenants to prospective landlords and real estate management companies based on incomplete Housing Court records.
The suit alleges that the defendant's practices often result in "blacklisting" prospective tenants as high risk. Typically, these tenants are then unfairly denied rental housing when the Housing Court case may have been actually decided in the tenant's favor, dismissed, or filed in error.
It appears First American Registry "simply turned a blind eye to the clear requirements of both federal and state fair credit reporting laws and that the lawsuit seeks to compel the company to live up to its legal obligation to report accurately," a lawyer for the plaintiffs said.
Tenant screening practices create unfair and unnecessary barriers to consumer's housing choices and tend to have a harsher impact on seniors, AARP said. Seniors denied rental housing due to an inaccurate or incomplete screening report are at a greater risk of being institutionalized and losing their ability to live independently. The impact of this practice on older New Yorkers can also have unforeseen consequences, as tenant screening reports can also impact eligibility for insurance and employment.
The lawsuit was filed in the U.S. District Court Southern District of New York.
