A class action suit was filed against entrata on February 12 in the US District Court for the Northern District of Georgia, Atlanta Division. Entrata offers a variety of products and services for the multifamily industry, including property management software, marketing, leasing, accounting, and utility management. The suit alleges that Entrata has violated federal law by not responding to identity theft victims who dispute incorrect information in its ResidentVerify tenant screening reports.
The 18-page lawsuit against Entrata alleges violations of the Fair Credit Reporting Act (FCRA). This law requires credit reporting agencies, like the defendant, to reinvestigate any information when a consumer disputes it as fraudulent and to notify the sources of that data for correction. According to the complaint, Entrata has “willfully and negligently” ignored these responsibilities in an effort to save money.
What is ResidentVerify?
Entrata’s ResidentVerify service provides property managers with screening reports on prospective tenants. These reports may include details about consumers’ credit histories, financial backgrounds, past evictions, criminal records, and other personal information, according to the filing.
A Georgia woman filed the lawsuit claiming that her apartment rental application was denied in March 2024 due to a report from ResidentVerify, which incorrectly stated that she had a past eviction. According to the lawsuit, this erroneous eviction information was the result of identity theft, which the plaintiff had previously reported to the police.
The complaint states that the woman emailed her dispute and a copy of the police report to ResidentVerify, which then sent her a template response. The case states, “Resident Verify’s failure to comply with the requirements of the Fair Credit Reporting Act (FCRA) results in serious consequences for consumers. These include the ongoing reporting of inaccurate information, a lack of legally required updates regarding the investigation of disputes, wasted time and resources on disputes that are ignored, and emotional distress.”
The lawsuit aims to represent anyone in the United States and its territories who, within the last two years, sent a communication to Entrata or ResidentVerify that the companies treated as a dispute. It specifically includes those who received a response that was similar in form and content to the letter received by the plaintiff.
More information can be found at https://www.classaction.org/.
