Fact Sheet—Adverse Action Notice:  Your Rights

Any business that uses consumer or credit reports to make decisions about you must provide you with an adverse action notice if they turn down your application or offer you less than favorable terms.

Common adverse may actions include:

• Denying you employment, insurance, an apartment, service, or credit due in part or solely because of information in a credit or consumer report
• Offering an arrangement that is less beneficial to you because of information in your credit or consumer report, such as requiring a co-signer or a deposit/larger deposit than would be required of another applicant

When an adverse action is taken based solely or partly on information in a consumer or credit report, the Fair Credit Reporting Act requires the business to provide you with a notice of the adverse action. The notice must include:

• the name, address and telephone number of the consumer reporting agency that supplied the consumer report, including a toll-free telephone number for the agency;
• a statement that the consumer reporting agency that supplied the report did not make the decision to take the adverse action and cannot give the specific reasons for it;
• a notice of your right to dispute the accuracy or completeness of any information the consumer reporting agency provided; and
• a statement that you have the right to a free report from the consumer reporting agency upon request within 60 days.

If your application for credit is turned down, the Equal Credit Opportunity Act requires creditors to provide additional information.  This must be in writing and sent within 30 days after receiving your application for credit.  The notice must include:

• Their name
• Their address
• The action that was taken
• The specific primary reason the action was taken OR
• Tell you how to request this information within 60 days.  This must include the name, address and telephone number of the person who can provide the specific reasons.