Adverse action notice pdf 2025

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They are typically delivered within seven to 10 business days following the decision to deny the loan application, usually in writing, although they may be communicated verbally as well. Banks and other lenders are required to provide adverse action notices in order to comply with consumer protection legislation.
Under the ECOA, an adverse action notice should inform the consumer of the decision, provide contact information for the dealership, identify any reporting agencies that provided credit information, and disclose the consumers credit score along with key factors affecting it.
The adverse action notice may be oral, in writing, or in electronic form, and must be received within a reasonable amount of time.
Pre-Adverse Action If a pre-employment background check uncovers information that leads you to decline a job applicant, you must provide the applicant with a written notice, i.e., a pre-adverse action letter. The pre-adverse action letter can be delivered via electronic or hard copy form.
Adverse action is defined in the Equal Credit Opportunity Act and the FCRA to include: a denial or revocation of credit. a refusal to grant credit in the amount or terms requested.

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Adverse action notices are usually sent through the mail to make documentation easier, but they can also be sent through email or communicated verbally.

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