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AppFolio Under Scrutiny Over Data Handling Procedures

AppFolio Data Handling Procedures

AppFolio is currently being investigated for its alleged ways of presenting inaccurate information according to a posting on the site 

Legal practitioners are currently looking into the company’s misdemeanor in providing false data and pieces of information that they obtained from a third party company CoreLogic National Background Data, LLC. The aforementioned provided criminal and eviction records to AppFolio, which they then used in their system of doing tenant background checks. 

Though the contract between the two companies urges AppFolio to do further checks on their end with the data provided by CoreLogic, most especially if the data calls for the denial of housing and other adverse action towards a certain individual, AppFolio reportedly did not take any. It was found out that they just solely relied on the processes of CoreLogic despite having “limited knowledge” of the aforementioned company’s processes. 

Inaccuracies range from but not limited to, information of individuals who had different names “that are not common nicknames or slight misspellings of the applicant’s name”, information regarding different dates of birth, and court records ranging from missing or inaccurate offense names, dates, etc., to multiple entries of the same criminal or eviction record appearing in the database. 

These inaccuracies in data may have lead to people being affected, the most adverse ones being denied access to housing. This is what the current investigation wants to uncover and if there would be a solid case, a class action lawsuit can be filed to make the company accountable for its misdeeds. 

This year the company has reached an agreement with the Federal Trade Commission to cough up more than $4.25 million, according to a report by Veronika Bondarenko of This comes after the federal agency had filed a complaint against the California-based property management software and screening company early this year after allegedly violating the Fair Credit Reporting Act. 

Editor’s note AppFolio’s Data Handling Procedures:

This piece discusses AppFolio’s Data Handling Procedures and why they are being investigated for such missteps. If you believe to be an affected consumer, feel free to contact us today!

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