Michigan House Bill Proposes Excluding Tenant Credit Scores from Rental Decisions

Troutman Pepper

The drumbeat to increase regulation of tenant screening continues, this time in Michigan.

On June 15, Michigan state Representative Brenda Carter (D-29) introduced House Bill 4818, which proposes to amend landlord-tenant act 1972 PA 348. Specifically, the amendment proposes to exclude the credit score of a prospective Michigan tenant from being a deciding factor in determining the prospective tenant’s eligibility for a lease. Under the proposed amendment “credit score” is defined as, “the numerical score ranging from 300 to 850 assigned by a consumer reporting agency to measure credit risk.”

As discussed here, state legislatures and federal agencies have become laser-focused on tenant screening. In February, the Federal Trade Commission and Consumer Financial Protection Bureau jointly issued a Request for Information, seeking public comment on the use of consumer reports and credit scores, criminal and eviction records, and algorithms in the tenant screening process.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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