Certified Apartment Manager (CAM) Practice Test

What should be included in the notification to an applicant about a consumer report being requested?

1. A verbal acknowledgment during the application process

2. A signed form authorizing the credit search

3. A general statement about credit scores

4. A list of property rules

The correct answer is: A signed form authorizing the credit search

The correct answer involves the necessity of obtaining a signed form from the applicant authorizing the credit search. This authorization is a fundamental requirement under the Fair Credit Reporting Act (FCRA). Obtaining explicit consent ensures that the applicant is aware that a consumer report, which could include credit history and other relevant information, will be requested during the application process. This precaution not only protects the rights of the applicant but also legally safeguards the property management company from potential liability for accessing sensitive personal information without permission. By requiring this signed form, property managers demonstrate transparency in the application process and adhere to legal standards, which is crucial for maintaining trust and compliance with regulations. Including just a verbal acknowledgment or a general statement about credit scores does not fulfill the legal requirements established by the FCRA since they do not provide adequate proof of consent. Similarly, a list of property rules is unrelated to the specifics of consumer reports and does not address the permission needed for conducting the credit search. Therefore, the signed authorization is the necessary and legally mandated component of informing an applicant about a consumer report being sought.