The Federal Trade Commission has taken action to stop a scheme that involves apartment listings on Craigslist. The apartment ads show enticing pictures offering rentals at affordable prices. However, the ads are fake and an estimated 146,000 would-be renters did not end up with a lease. Instead, they were stuck with a recurring charge of $30 a month. The Federal Trade Commission has filed an injunction to stop the scam, which was reported in at least 35 states and pulled in at least $6.8 million.
It is important to know that if you are looking to rent an apartment, landlords may check your credit, but that typically does not occur until after you have seen the unit and filled out an application. The landlord also cannot check your credit without your permission, which is usually included as part of the application process.
Here are some additional tips to protect you from a credit check scam:
- Think twice before you give out personal information. Legitimate services will need your social security number to pull your credit score, but a truly free score should not require a credit card number.
- Do not wire money for a lease, deposit or application fee. That is the same as handing over cash. There are no consumer protections and you have no way of getting it back.
- Do not pay before you sign a lease.
- Do your research online about the landlord and rental company. If you notice the same rental showing up under different names, that is a red flag.
Many of the victims from the Craigslist rental scam did not realize they had been charged until months later. Review your statements carefully every month for any suspicious charges. If you suspect you have been scammed, report it to the FTC as soon as possible.
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