When an applicant says the report is wrong — a settled eviction still showing, someone else’s record merged in, a paid balance listed as open — the landlord’s path is fixed by the roles the FTC describes: the consumer reporting agency compiled the report and must investigate disputes; the landlord made the decision and must have sent the adverse action notice telling the applicant how to dispute. The CFPB explains that tenant screening reports draw on credit, eviction and criminal records and that consumers may dispute inaccurate information with the agency. The landlord can, and often should, hold the unit while the dispute is resolved — provided the criteria and the seven-day rule in Texas Property Code §92.352 are handled in writing.
The path
- Confirm the adverse action notice went out with the agency’s contact details; if not, send it now.
- Tell the applicant in writing that the dispute is with the agency, and that you will reconsider on a corrected report or on documents that show the error (a court dismissal, a paid-in-full letter).
- Decide, and say, whether the unit will be held and for how long; a holding agreement in writing avoids a claim that the applicant was strung along.
- Re-run or re-read the report when the agency reports the outcome; apply the same criteria.
- If the corrected report still fails the criteria, the original decision stands; document it. If it passes, approve on the ordinary terms.
What the landlord should not do
| Do not | Do instead |
|---|---|
| Edit or annotate the report yourself | Rely on the agency’s corrected report or on primary documents |
| Deny again “to be safe” without re-reading | Re-apply the criteria to the corrected file and record the reasoning |
| Share the report with the applicant’s relatives or another landlord | Communicate only with the applicant and co-applicants |
| Charge a second application fee for the reconsideration | Treat it as the same application unless the criteria say otherwise |
| Keep the disputed report after the decision is closed | Dispose of it securely when no longer needed (FTC) |
Mixed files and identity
Many disputes are mixed files — a common name, a shared address. Ask the applicant for the identifiers that distinguish them (date of birth, prior addresses), compare them with the report’s header, and note the mismatch in the file; that note is what a reconsideration rests on while the agency investigates.
Frequently asked questions
Who corrects an error in a tenant screening report?
The consumer reporting agency that compiled it; the applicant disputes with the agency, and the landlord’s adverse action notice tells the applicant how (FTC, CFPB).
Must a landlord reconsider after a correction?
No federal rule compels reconsideration, but a landlord who denied on the strength of a report should re-apply the written criteria to the corrected report and document the outcome.
Can the landlord hold the unit during a dispute?
Yes, by written agreement stating how long; without one, Texas §92.352’s seven-day rule and the criteria continue to apply to other applicants (Property Code §92.352).
Sources
Rules change and the right answer can depend on the home, the city, the lease and the timing. These are the official pages this guide relies on; check them before signing, charging a fee, sending a notice or making a legal decision.
- FTC — Using consumer reports: what landlords need to know ↗
- CFPB — Tenant screening reports (key terms) ↗
- Texas Property Code, Chapter 92 — Residential Tenancies ↗
- Texas State Law Library — Leases ↗
General information for U.S. landlords, with a Texas focus. This guide is not legal, tax or accounting advice. Consult a qualified professional for your situation. Written by the rentalfreelease.com Editorial Team; last reviewed September 19, 2026.