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AppFolio Settlement Established; Will Pay $4.25 Million to FTC

Learn about the AppFolio Settlement

The California-based property management software and screening company, AppFolio, has reached an agreement with the Federal Trade Commission (FTC) in December with regards to a complaint that the federal agency had filed earlier this year, according to a report by Veronika Bondarenko of website 

The complaint that was filed early this year alleges that AppFolio failed to make sure that the information that they include in their screening reports is accurate.

Eviction and non-eviction criminal records, along with other data the company has sourced from a third party entity, were largely inaccurate which the FTC contends as a violation of the Fair Credit Reporting Act. The law also prohibits the inclusion of court records of more than seven years old of which the company was found out doing. 

Evidently, this practice has been ongoing since April 2019.  

What’s the Big Deal?

The pieces of information that were inaccurate have led to some individuals being denied access to housing and other opportunities. 

As such, the settlement requires AppFolio to cough up a $4.25 million fine to the FTC as well as requiring the company to not include any more conviction records older than seven years in future reports. 

That’s a lot of money, but FTC Commissioner, Rohit Chopra, expressed his dissent with the settlement. In a report from, Chopra urged that the FTC do more instead of just imposing a monetary fine on the company.

“Sloppy, inaccurate credit reporting practices are not mild inconveniences for American families,” he states.

He has also urged for the FTC to provide redress for the victims and impose stronger accountability measures. The possibility of this case being referred to the Department of Justice is also not out of the question at the moment.  Because of this, the company is also being investigated by different independent law practitioners throughout the country.  

Editor’s note on the AppFolio Settlement:

This piece discusses the latest news on the AppFolio Settlement. If you have any questions or concerns regarding this piece we ask that you send us a message via the ‘Contact Us’ button below! We’d love to hear from you. 

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