Tenants Can Sue Company for Credit Reporting Violations

Tenants brought a class-action lawsuit against On-Site Manager, Inc., a credit reporting agency that provided information to landlords about evictions. One tenant submitted a rental application for an apartment in 2010. The agency gave landlord a report showing that tenant had been evicted from another apartment in 2002. Tenant didn't get the apartment and claimed that the company violated federal credit reporting laws by giving landlord information about an eviction judgment that was more than seven years old. The agency asked the court to dismiss the case, claiming that tenants had signed releases when the credit reports were ordered. The court ruled against the agency. The releases signed by tenants were void and unenforceable under federal and state laws and would violate public policy if enforced. The Federal Credit Reporting Act was enacted to protect consumers from agencies that failed to ensure that information provided was accurate and up-to-date. Tenants could go forward with their lawsuit.

Massey v. On-Site Manager Inc.: Index No. 11 Civ 2612, NYLJ No. 1202515302562 (EDNY; 9/15/11; Cogan, J)