Which of the following is NOT typically included in an adverse action notice?

Which of the following is NOT typically included in an adverse action notice?

• A. A summary of the customer's credit history.
• B. The specific reasons for the adverse action.
• C. The customer's right to request their credit report.
• D. The terms of the approved credit offer.

Answer: (D)

An adverse action notice is a communication sent to a consumer when credit has been denied or terms of credit have been changed in a way that adversely affects them. Such notices must comply with the Fair Credit Reporting Act (FCRA) and the Equal Credit Opportunity Act (ECOA). The terms of the approved credit offer are not typically included in an adverse action notice because the adverse action notice itself signifies that a credit request has been denied or modified unfavorably. Therefore, including the terms of an approved credit offer would be contradictory to the nature of the notification, which aims to inform the consumer of the decision that has been made against them. In contrast, an adverse action notice will include a summary of the customer's credit history, the specific reasons for the adverse action, and the customer's right to request their credit report. These elements ensure that the consumer understands why their credit request was denied and provides them with information and options for addressing any issues in their credit history.

An adverse action notice is a communication sent to a consumer when credit has been denied or terms of credit have been changed in a way that adversely affects them. Such notices must comply with the Fair Credit Reporting Act (FCRA) and the Equal Credit Opportunity Act (ECOA).

The terms of the approved credit offer are not typically included in an adverse action notice because the adverse action notice itself signifies that a credit request has been denied or modified unfavorably. Therefore, including the terms of an approved credit offer would be contradictory to the nature of the notification, which aims to inform the consumer of the decision that has been made against them.

In contrast, an adverse action notice will include a summary of the customer's credit history, the specific reasons for the adverse action, and the customer's right to request their credit report. These elements ensure that the consumer understands why their credit request was denied and provides them with information and options for addressing any issues in their credit history.