AppFolio to Pay $4.25M Settlement to the Federal Trade Commission
AppFolio, a California-based property management software, and screening company, has agreed to pay a $4.25 million settlement to the Federal Trade Commission.
The complaint, which the FTC filed earlier this year, claimed that the company violated the Fair Credit Reporting Act by failing to ensure that the third-party tenant information it included in screening reports was fully accurate. Eviction and non-conviction criminal records older than seven years may have also been included, which would also be in violation of the act.
According to the complaint, the information was included in screening reports provided to landlords up until April 2019 and led some to be denied housing.
“In multiple instances, Defendant’s failure to follow reasonable procedures to assure maximum possible accuracy of Consumer Reports may have led to the denial of housing or other opportunities,” reads the complaint.
