Property Management

A Mississippi property manager wants to conduct credit and background checks on rental applicants. Under the Fair Credit Reporting Act (FCRA), the manager must:

AObtain reports without applicant knowledge
BObtain applicant's written authorization, use reports only for permitted purposes, and provide adverse action notices with specific information if the application is denied based on the report✓ Correct
COnly use background checks for commercial tenants
DFile the background check with MREC

Explanation

The Fair Credit Reporting Act requires: written authorization from applicants before running credit/background checks; using reports only for the stated permissible purpose (tenant screening); and if an adverse action is taken based on the report, providing the applicant with the name of the reporting agency and their right to dispute inaccuracies.

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