Get the free ADVERSE ACTION NOTICE

This document provides a structured notice for borrowers regarding the denial, termination, or change of credit based on compliance with the Equal Credit Opportunity Act and Frank-Dodd Act.

How to fill out adverse action notice

How to fill out ADVERSE ACTION NOTICE

1. Include your company name and address at the top of the notice.
2. State the date of the notice.
3. Clearly indicate that this is an Adverse Action Notice.
4. Specify the nature of the adverse action taken (e.g., credit denial, employment rejection).
5. Include the specific reasons for the adverse action. You may reference the consumer report if applicable.
6. Inform the individual of their rights to obtain a free copy of their consumer report from the reporting agency within 60 days.
7. Provide contact information for the reporting agency that provided the consumer report.
8. Include a statement that the individual can dispute the accuracy or completeness of any information in the report.

Who needs ADVERSE ACTION NOTICE?

1. Employers who deny job applications based on background checks.
2. Lenders that deny credit applications due to credit report information.
3. Insurance companies that take adverse actions based on consumer reports.

People Also Ask about

Why did I get a notice of adverse action after buying a car?

Some of the most important pieces of information that must be included in one of these letters are: Name, Address, and Phone of the consumer reporting agency. The credit score that was used. An anti-discrimination notice. A statement of action by the creditor. A statement of the specific reasons the letter has been issued.

What does an adverse action notice mean?

1. Reason for Adverse Action: The letter indicates the lender could not approve the financing terms based on the credit report provided by Equifax, Experian, and TransUnion. Specific reasons listed include: Lack of recent installment loan information. Lack of recent revolving account information.

What does a notice of adverse action mean?

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.

How to write an adverse action letter?

Either a statement of the specific reasons for the action taken or a disclosure of the applicant's right to a statement of specific reasons and the name, address, and telephone number of the person or office from which this information can be obtained.

For pdfFiller’s FAQs

What is ADVERSE ACTION NOTICE?

An Adverse Action Notice is a notification that informs an individual when a credit decision has been made that is unfavorable to them, such as a denial of credit or an increase in interest rates, due to information obtained from a consumer report.

Who is required to file ADVERSE ACTION NOTICE?

Any creditor or lender that takes an adverse action based on consumer credit information is required to file an Adverse Action Notice, including banks, mortgage companies, credit card companies, and other financial institutions.

How to fill out ADVERSE ACTION NOTICE?

To fill out an Adverse Action Notice, include the date of the notice, the name and address of the creditor, a statement explaining the adverse action, information on who provided the credit report, the reason for the adverse action, and the right to obtain a free copy of the credit report.

What is the purpose of ADVERSE ACTION NOTICE?

The purpose of the Adverse Action Notice is to provide transparency to consumers regarding why their credit application was denied and to inform them of their rights regarding their credit information.

What information must be reported on ADVERSE ACTION NOTICE?

The information that must be reported includes the nature of the adverse action taken, the reasons for the action, the name and contact information of the credit reporting agency that provided the report, and the consumer's right to request a copy of the report.