Adverse Action Notices: Specific Reasons for Denial

When you take adverse action on an application for a credit product/service, Regulation B requires you to disclose the specific reasons that led to your decision. Have you ever been told you are limited to the number of reasons you can disclose? This used to be common years back and while we don’t see that much anymore, we still occasionally run into institutions that think they cannot disclose more than four reasons on an adverse action notice.

David explains more in the video.

Video Highlights:

• Regulation B does not limit adverse action notices to only four reasons.
• You should disclose all the primary reasons for denial for the primary applicant, as well as any co-applicants.
• There is no privacy between co-applicants.

Published
2023/05/11