This Is our Village

Sunday, December 29, 2013

David, please explain to me why a building who rejected someone with bad credit, got fined $20,000.00

Hi David, I read with great interest about the family who was turned down because of poor credit in the UCO Reporter's President's Report .You said that the couple were members of a "Protected Class" and filed a discrimination complaint. Long story short, they were awarded $20,000.  On reading the list of Protected Classes, it appears to me, that every single person in the country falls into one category or another.  So my question is - what am I missing here?  Unless you are stating that being a member of a "Protected Class" overrides a poor credit rating, I have to assume something was left out of the article, because if not, something does not make sense here.  Please enlighten me!


  1. Hi Roz,
    When a protected class party is rejected, for any reason, it is not uncommon for them to file a discrimination complaint with HUD (Housing and Urban Development).

    HUD relays that complaint to our local Office of Equal Opportunity ( OEO ).
    An OEO investigator is assigned, and in many cases finds in favor of the complainant.

    These complaints against the Association are defended by our Insurance coverage and the Insurance carrier assigns an Attorney.

    In most cases, the insurance company assigned Attorney will negotiate a settlement rather than go to litigation, where these discrimination cases can bring huge awards.

    If the OEO investigator believes that there is discrimination, yes indeed that finding can override any other valid cause of rejection; and your only alternative is to go to very costly litigation.

    Dave Israel

  2. I think it is most important that each and every condo corporation has a written policy of requirements for all applicants, including those members of a "protected" class. Those requirements should be given to each and every potential buyer/renter early on in the process. This situation amplifies why ALL potential residents, whether renter or owner, must meet the same requirements. Once you deviate to accommodate a potential owner or renter who has a poor credit history (Section 8/Welfare), the condo corporation puts themselves in jeopardy of discrimination when they deny another applicant for poor credit or lack of income. Documentation of a policy and its across the board application is essential in avoiding this type of scenario.

  3. Perhaps this policy requirement, if legal, can be drawn up by an attorney and distributed to each and every association. It would be most beneficial.

  4. Hi David, first Happy New Year, and second thanks for explaining it all in layman language for me.

    What ejs2283 said sounds like a great idea, but doubt it would be that easy......or would it?

    I still find it extremely hard to believe that there is nothing missing from this story, because the way it appears now, anybody with poor credit can make an easy $20,000 by doing just what these people did.


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