Quick Answer
When a consumer report plays any part in a less favorable decision on a rental application, you send the applicant a written adverse action notice. Less favorable includes a denial, a cosigner requirement, and a higher deposit or rent. The Fair Credit Reporting Act (15 U.S.C. § 1681m) and Cal. Civ. Code § 1785.20 together call for the reporting agency’s name, address, and telephone number, a statement that the report was part of your decision, and the applicant’s rights to a free copy within 60 days and to dispute the report. Rules last checked October 2, 2026.
Key Takeaways
- The trigger is your use of a report. If a consumer report factored in, even in part, the notice is due when the outcome is less favorable.
- Conditions count. A cosigner requirement, a larger deposit, or higher rent based on the report is an adverse action, as well as a denial.
- California asks for writing. Section 1785.20 calls for written notice, and a written notice also satisfies the federal rule.
- State the agency and the rights. Give the agency’s name, address, and telephone number, the 60-day free copy right, and the right to dispute.
- Add the score if you used one. The federal rule asks for the numerical score, its range, and the key factors when a credit score was part of your decision.
1. What Triggers the Notice
An adverse action is a less favorable decision that rests, in whole or in part, on information in a consumer report. Under 15 U.S.C. § 1681m and Civil Code § 1785.20, the common triggers in leasing are:
- Denying the application.
- Requiring a cosigner or guarantor that a standard applicant would not need.
- Raising the deposit or rent above your published standard because of the report.
If you decide on facts the report did not supply, such as income you verified yourself, the report-based notice is not triggered. Section 1785.20(b) separately covers decisions based on information from sources other than a reporting agency.
2. What the Notice Includes
Build one notice that meets both laws. It states:
- The adverse action itself.
- The reporting agency’s name, address, and telephone number (the federal rule asks for a toll-free number for nationwide agencies).
- That the agency did not make the decision and cannot explain it, and that your decision was based in whole or in part on the report.
- The right to a free copy of the report from that agency within 60 days.
- The right to dispute any inaccurate information in the report, with the agency.
- The credit score, if you used one, with its range, the key factors, the date, and who provided it.
3. Written Notice in California
The federal statute allows an adverse action notice to be oral, written, or electronic. California’s § 1785.20 calls for written notice, so put the notice in writing and keep a copy with the applicant file. Written notice also satisfies the federal rule.
4. Quick Reference
| Screening outcome | Notice due? | Reference |
|---|---|---|
| Denied because of a credit score | Yes, with the agency details and the score | 15 U.S.C. § 1681m, Civ. Code § 1785.20 |
| Denied because income was not verified, no report used | No report-based notice | FCRA and § 1785.20 |
| Approved with a cosigner because of the report | Yes | 15 U.S.C. § 1681a(k) |
| Approved on standard terms | No | Not applicable |
| Denied because a report showed a prior eviction | Yes | 15 U.S.C. § 1681m |
What This Guide Does Not Cover
This guide covers adverse action notices for residential applicants under the federal Fair Credit Reporting Act and California Civil Code § 1785.20. It describes what the statutes say as of the check date above and does not predict how a court will rule on your facts.
It does not cover:
- Screening fee limits and receipts under Civil Code § 1950.6.
- Criminal-history standards under fair housing law, including HUD guidance and local fair chance ordinances.
- Commercial leases and employment screening.
- Reference calls you make yourself, where no reporting agency is involved.