In a significant turn of events, SafeRent Solutions, a tenant screening company, has reached a settlement in a Massachusetts federal court regarding claims of race bias in its screening practices. The agreement comes following allegations that the company’s methods disproportionately excluded Black and Hispanic renters from housing opportunities.
Tenant Screening $2.2M Race Bias Fine: Settlement Details
SafeRent and the attorneys representing the class of housing applicants informed the judge on Thursday about the reached agreement. Under the terms, each plaintiff stands to receive up to $10,000 at the discretion of the court. To qualify for the claim, plaintiffs must provide documentation of holding a public housing voucher during the class period. Additionally, class counsel reserves the right to request up to $1.1 million in attorney fees from the court.
The Controversy
At the heart of the lawsuit were SafeRent Scores, an algorithmic assessment heavily reliant on applicants’ credit scores. Lead plaintiffs Monica Douglas and Mary Louis argued that this calculation disproportionately disadvantaged Black and Hispanic renters, who are more likely to have subprime credit scores.
