An adverse action notice is provided to let a person know that he has been denied credit, insurance, employment or other settlements because of information in his credit report. Adverse action notice also notifies a person the name and address of the concerned credit reporting agency or credit bureau.
The term adverse action is defined in the Equal Credit Opportunity Act and in the Fair Credit Reporting Act. It is defined as – the term “adverse action” means a denial or revocation of credit, a change in the terms of an existing credit arrangement, or a refusal to grant credit in substantially the amount or on substantially the terms requested. Such term does not include a refusal to extend additional credit under an existing credit arrangement where the applicant is delinquent or otherwise in default, or where such additional credit would exceed a previously established credi…
