Adverse Action Notices: Giving the Reasons for Denial

Under Regulation B, when you take adverse action in connection with an application for a credit product or service, you must provide an adverse action notice. There are several things that are required to be included. For example, a statement of the action taken, the creditor’s name and address, the ECOA statement, the name and address of the bank’s primary regulator, etc. You also have to tell the applicant the reasons for the adverse action. That’s usually not that difficult to do, but did you know there are actually a couple of different ways to do this?

David explains more in the video.

Video Highlights:

• Regulation B specifies the information required to be disclosed on an adverse action notice.
• The reasons that led to the adverse action notice should be specific.
• Regulation B does allow an option to provide a “no reasons” adverse action notice.

Published
2023/04/21