Landlords are increasingly using credit reports as a tool to resolve rent disputes, targeting tenants’ credit scores instead of relying on lengthy legal battles. By hiring debt collectors, landlords can report unpaid rent to credit bureaus, which can severely damage tenants’ credit scores. This practice has become common, as rental debt is one of the top complaints in debt collection, according to the Consumer Financial Protection Bureau.
Critics argue that this gives landlords unchecked power, as tenants often cannot dispute these claims before their credit scores are affected. The impact can be devastating for renters, making it harder to secure housing or loans. Some landlords have turned to collection agencies, even when court rulings are not in their favor, leveraging tenants’ credit fears. This trend highlights growing concerns over the unchecked use of credit reports in disputes and the challenges tenants face in defending themselves.
While the Fair Credit Reporting Act should preclude these tactics, sometimes getting erroneous or dispute items off one’s credit report is easier said than done.
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