ATCP 134 sets specific rules on when and how a landlord can charge a rental applicant for the cost of a credit report. For background, ATCP 134 is the chapter of the Administrative Code of Wisconsin that sets forth 21 requirements landlords must follow or risk being sued for double damages and attorney's fees by the applicant or tenant.
The applicable portion of the rules regarding credit checks is located at ATCP 134.05(4). This section says that:
1. A landlord may charge a rental applicant the actual cost of their credit check up to $20.
- So if the actual cost to the landlord to order the report is only $10, then the landlord can only require the applicant to pay $10.
2. In order to charge the applicant the credit report fee, the landlord must obtain the report from a consumer reporting agency that compiles and maintains files on a nationwide basis.
- So a landlord can only charge the applicant the fee if s/he is obtaining the credit report from one of the "Big 3" (Experian, Equifax, or Trans Union)
- Thus, a landlord cannot charge the tenant for the cost of the report if it is obtained from a local or regional consumer information database, credit brokers, credit resellers, etc.
3. The Landlord must notify the applicant of the cost before ordering the report.
4. The landlord must provide a copy of the credit report to the applicant if the applicant is paying for the report.
5. The landlord cannot charge the applicant for the cost of the credit report if the applicant provides the landlord with a copy of his/her credit report (obtained from one of the "Big 3") that is less than 30 days old.
- If you are faced with this situation, I would strongly advise the landlord to still order a more recent report at their own expense to ensure that the report provided by the tenant has not been modified.
