Notice of Adverse Action - Non-Employment - Due to Credit Report 2025

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If you do not recognize information on your credit report, or believe an item may be inaccurate, you may request an investigation. Only inaccurate information may be removed; negative information that is accurate will stay on your credit report as long as the governing laws allow.
An adverse credit history is a track record of poor repayment history on one or more loans or credit cards. Adverse credit history will be reflected in a consumers credit report. It will lower their credit score and make it more difficult to get a loan or credit card with the best terms or even to be approved at all.
An adverse action notice must be given if credit is denied or not submitted for approval, if credit terms offered are not what was requested, or if a decision is made based on information in a consumer credit report.
Quick Answer. An adverse action letter is a document that details the reasons why a lender denied a recent credit application. Lenders are required by law to provide this notice, which also includes details about your rights as a consumer.
An adverse action notice is to inform you that you have been denied credit, employment, insurance, or other benefits based on information in a credit report. The notice should indicate which credit reporting agency was used, and how to contact them.
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Yes, you can still be hired after an adverse action letter. The letter initiates a process lasting five to seven days, allowing you to review and dispute any inaccurate information in the background check. If you correct the discrepancies, the employer may reconsider their decision and proceed with your hiring.

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