Landlord Can't Report Tenant's Nonpayment to Credit Reporting Agency Before Case Decided

Landlord sued to evict tenant for nonpayment of rent. In response, tenant claimed breach of the warranty of habitability and harassment. After a trial was scheduled for June 12, 2025, tenant asked the court to stop landlord from reporting unpaid rent to credit reporting agencies pending the outcome of the trial. Landlord had notified all building tenants in December 2024 that it intended to submit all past-due debts to a credit reporting agency. Landlord argued that tenant didn't have a private right of action under the Fair Credit Reporting Act (FCRA). Landlord also claimed that housing court didn't have the authority to grant injunctive relief.

But housing court was authorized to "employ any remedy, ... procedure or sanction authorized by law for the enforcement of housing standards, if it believed they will be more effective to accomplish compliance or to protect and promote the public interest." Reporting a tenant who withholds rent to a credit reporting agency has an obvious deterrent effect on tenants' ability to seek a remedy for enforcing housing standards. The court ruled that landlord was enjoined from reporting tenant's unpaid rent to a credit reporting agency until the nonpayment proceeding was decided. 

100 John Mazal SPE Owner v. Sage: Index No. 317283/2024, 2025 NY Slip Op 50310(U)(Civ. Ct. NY; 3/11/25; Stoller, J)