Texting a Tenant Rejection: What the FCRA Requires

Quick Answer

If a consumer report played any part in a denial or another less favorable outcome, 15 U.S.C. § 1681m(a) calls for a notice to the applicant. A rejection text that says only “we’re going with someone else” does not carry the required items, so it falls short of the statute. The notice can be oral, written, or electronic, and it must name the consumer reporting agency with its address and telephone number, state that the agency did not make the decision, and describe the applicant’s right to a free report within 60 days and the right to dispute the report. Statute text last checked October 2, 2026.

Key Takeaways

• The trigger is use of a report. Section 1681m(a) applies when you take adverse action based in whole or in part on information in a consumer report.
• Content decides the question, more than the channel. The statute allows oral, written, or electronic notice, and a text works only if it carries every required item.
• No two-step process applies to rentals. The pre-adverse-action step in § 1681b(b)(3) covers employment purposes, so it is not a rental requirement under the FCRA.
• Willful violations carry statutory damages. Section 1681n provides $100 to $1,000 per consumer, plus punitive damages and attorney’s fees.
• Keep a record. Save the notice, the report, and the time and method you sent them.

1. When the Notice Applies

Section 1681m(a) applies when any person takes adverse action with respect to a consumer that is based in whole or in part on information in a consumer report. For a landlord, adverse action includes denying an application. The FTC’s guidance for landlords adds that it includes other less favorable terms, such as a higher deposit, a higher rent, or a required cosigner, when the report drives the change.

The duty depends on a consumer report from a consumer reporting agency. Information you gather yourself, such as a call to a prior landlord, is not a consumer report. See the employment verification guide.

2. What the Notice Contains

Under § 1681m(a), the notice includes:

1. The agency’s name, address, and telephone number, with a toll-free number if the agency compiles files on consumers nationwide.
2. A statement that the agency did not make the decision and cannot explain why you took the action.
3. The right to a free copy of the report from the agency if the applicant asks within 60 days (§ 1681j(b)).
4. The right to dispute the accuracy of information in the report with the agency.
5. The credit score, if you used one, with the related items listed in § 1681g(f).

3. Delivery

Section 1681m(a)(1) allows oral, written, or electronic notice. That leaves a text message open as a channel, and the question becomes whether the text carries items 1 through 5. A one-line rejection does not. A short written notice sent by email or mail does, and it leaves a record that a dated copy proves.

You do not have to send a copy of the report before the decision, and the FCRA does not set a waiting period for rental decisions. The pre-adverse-action sequence in § 1681b(b)(3) applies to employment purposes. If a screening service or your own policy sends an earlier notice, that is a choice you make, and some states add their own steps, so check yours.

4. When to Send It

Section 1681m(a) does not set a day count. The FTC’s guidance is to give the notice when you communicate the decision, so build the notice into the same step as the rejection and send it the same day.

5. Exposure

• Willful violations (§ 1681n): actual damages or statutory damages of $100 to $1,000 per consumer, punitive damages, and attorney’s fees. The Supreme Court held in Safeco Insurance Co. v. Burr, 551 U.S. 47 (2007), that willfulness includes reckless disregard of the statute.
• Negligent violations (§ 1681o): actual damages and attorney’s fees.
• Time limit (§ 1681p): generally two years from discovery and no more than five years from the violation.

The statute applies to any “person,” and whether holding title through an LLC changes your exposure depends on your facts, so ask your attorney.

6. A Rejection Routine

1. Ask whether a consumer report played any part in the decision.
2. If it did, prepare a notice with items 1 through 4, and item 5 if you used a score.
3. Send it when you tell the applicant, by email or mail if you can.
4. Keep the notice, the report, and a note of how and when you sent it.
5. If no report played a part, a short, polite message is enough under the FCRA. Check your state and city for additional rules.

7. Questions Owners Ask

Is a text ever enough? A text can be electronic notice, but only if it carries all the required items. A one-line “no thanks” does not.

Must I send the report before I decide? Not under the FCRA for rental decisions. That step belongs to employment purposes.

What if I used a score? The notice includes the score and the related items in § 1681g(f).

Does it matter that I denied for several reasons? If the report was one of the reasons, the statute applies, because the standard is “in whole or in part.”

What This Guide Does Not Cover

This guide covers the federal notice for residential rental decisions based on a consumer report under 15 U.S.C. § 1681m. It describes the statute as of the check date above and does not predict how a court will rule on your facts.

It does not cover:

• State notice rules, such as California Civil Code § 1785.20, covered in the California adverse action guide.
• Fair housing claims that arise from a denial.
• Employment background checks.
• Commercial leases.