Adverse Action Notice

The Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA) require that an Adverse Action notice (also called a Notice of Credit Denial) is provided to the customer when an Adverse Action is taken.  For purposes of credit transactions, “adverse action” means (1) Denying credit to an applicant; (2) Refusing to grant credit in substantially the amount or on substantially the terms requested by the applicant, unless the applicant accepts your counteroffer; or (3) Any action taken or determination that is adverse to the interests of the consumer (for example, unwinding a spot delivery).

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