Glossary
What is an adverse action notice?
What it must contain
Regulation B requires the notice to state the specific principal reasons for the adverse action (or disclose the applicant's right to request them), identify the creditor, and include the ECOA anti-discrimination notice. When a credit report contributed to the decision, the FCRA adds disclosures about the consumer reporting agency.
Vague reasons such as 'did not meet our standards' are not sufficient — the reasons must be specific and accurate to the decision actually made.
Timing
For most consumer credit, notice is generally required within 30 days of receiving a completed application. Different timelines can apply to incomplete applications, counteroffers, and existing accounts.
How Hadrian handles it
Hadrian stamps a 30-day adverse-action clock only on genuine denials (not withdrawals or cleanup), routes the decision to a reviewable step, and records the specific reasons and the evidence behind them in a tamper-evident audit trail — so an examiner can see what was decided, when, and why.
FAQ
Adverse Action Notice — common questions
When is an adverse action notice required?
Generally within 30 days of a completed application when a creditor denies, terminates, or unfavorably changes credit. Counteroffers and incomplete applications follow different rules.
What happens if the reasons are not specific?
Generic reasons can expose a lender to ECOA/Reg B liability. The notice must state the specific principal reasons that drove the actual decision.
Related
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