Lawsuit Investigation Looks into Appfolio Over Inaccurate Background Checks

Attorneys working with ClassAction.org would like to speak to anyone who had a background check run by Appfolio and found it contained inaccurate information.

Appfolio provides tenant background checks to property management companies across the country and was recently forced to pay $4.25 million by the FTC to resolve allegations that it failed to take proper steps to ensure the information it furnished was accurate. In light of these claims, attorneys are investigating whether a class action lawsuit can be filed on behalf of people who were affected by the allegedly inaccurate reports, including those who were denied housing as a result.

If you had a background check run by AppFolio and found it contained inaccuracies, fill out the form on this page and tell us about it. The more people the attorneys can speak with, the better chance they have at getting a class action lawsuit on file.

What Errors Could Have Been Included in My Background Check Report?

In addition, Appfolio was accused of reporting eviction and non-conviction criminal records that were more than seven years old in violation of the Fair Credit Reporting Act (FCRA).

FTC: Appfolio Received Complaints, Failed to Address Criminal Background Check Issues

Appfolio allegedly received its criminal and eviction records from CoreLogic National Background Data, LLC, a third-party vendor. Rather than implement procedures to ensure the accuracy of the information it received, Appfolio generally relied on CoreLogic’s methods for matching an applicant’s information to that which is listed in criminal and eviction records, despite having “limited knowledge” of the company’s processes, the FTC alleged.

In addition, CoreLogic’s contract with Appfolio allegedly stated there would be instances in which provided information would appear to match an applicant – but could actually belong to someone else – and that Appfolio should “independently verify the information” to make sure it pertains to the potential tenant before any adverse action, such as denial of housing, is taken. Further, CoreLogic stated that it cannot guarantee the accuracy of the information it provides.

Despite these contractual provisions, disputes from consumers and the legal requirements set forth by the FCRA, Appfolio failed to take reasonable steps to ensure the accuracy of its tenant screening reports, leading to the wrongful denial of housing and other opportunities, the FTC claimed.

Why Is a Class Action Needed if the FTC Already Sued?  

Although the FTC sued and obtained a $4.25 million settlement against Appfolio, the settlement offers no remedy or compensation to consumers who were denied housing or otherwise harmed by the company’s background check reports. The settlement money will go straight to the U.S. Treasury – and while Appfolio will be required to comply with the FCRA going forward and submit periodic paperwork to the FTC, no money will reach the hands of consumers. This is where a class action lawsuit could help.

How Could a Class Action Lawsuit Help?

If you applied for housing and had your background check furnished by Appfolio, attorneys working with ClassAction.org want to hear about it.

Before they can even consider filing a lawsuit, they need to speak to individuals who believe inaccurate information was included on their background check reports. It costs nothing to get in touch or to speak to someone about your rights, so fill out the form on this page today for more information.

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