The Consumer Financial Protection Bureau recently released an opinion that consumer reporting agencies, used by housing owners and management companies to screen potential residents and employees, violate the law when they use name-matching procedures that lead to false-identity matching.

The use of name-only matching procedures, when a consumer reporting company uses only first and last name to determine whether a particular item of information relates to a particular consumer, without using other personally identifying information such as address, date of birth, or Social Security number, fails to ensure maximum possible accuracy of consumer information, the CFBP says.

In its opinion, the CFPB affirmed that the practice of matching consumer records solely through the matching of names is illegal under the Fair Credit Reporting Act.

Hispanic, Black, and Asian rental applicants are at greater risk of denial because surnames of people from these communities tend to be less diverse than non-Hispanic whites.

Housing members are urged to check in with any screening services you use to ensure they are not matching consumer records only by first and last names.

In a statement, HUD applauded the CFBP’s opinion. “We support the CFPB’s action to put an end to these practices, which will help our nation recover from the economic impact of the pandemic in a racially equitable manner. Our Department remains committed to ensuring all communities—especially those most impacted by non-inclusive policies and procedures—have a fair opportunity to secure housing for themselves and their families,” Demetria McCain, Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity, said.

Read the CFPB’s statement and link to its opinion here.