LAWDOG CREDIT REPORTING DICTIONARY

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The term "adverse action" is defined by Section 603 of the Fair Credit Reporting Act as amended, as, generally, including any and all negative actions which affect consumers. Essentially, any unfavorable change in credit or contract terms, denial or cancellation of credit or insurance, or denial of employment would all be included. A portion of Section 603 of the Fair Credit Reporting Act, as amended under the Fair Credit Reporting Reform Act of 1996, is reproduced here for illustration.

If any adverse action is taken, based in whole or in part on any information in a consumer report, oral, written or electronic notice of the adverse action, and the name address and phone number of the credit reporting agency shall be given to the consumer. In addition, the user must advise the consumer that the agency did not make the adverse decision, and is unable to provide the reasons for the action. A toll-free number is required for agencies operating on a nationwide basis.

Right To Request Free Credit Report Within 60 Days

The consumer must further be notified orally, in writing, or electronically, of their right under Section 612 to obtain a free credit report for 60 days, and of their right to dispute the accuracy or completeness of any information, under Section 611. See Section 615 of the Fair Credit Reporting Act, as amended, is reproduced here for illustration purposes only.

A caution is in order any time that adverse action is taken. Even those who are not "users" of consumer reports may be required by Federal law to give notices. For more information, See Duties of Users Taking Adverse Action from the LAWDOG Credit Reporting Center, or click here. Link does not return to this page.

In addition to the requirements of this section, the same facts may require action under the Equal Credit Opportunity Act, or state law provisions. Special rules apply to consumer reports for "employment purposes" and investigative consumer reports. A portion of Section 202.2 of the Equal Credit Opportunity Act are reproduced here for illustration.

A copy of The Fair Credit Reporting Act, As Amended, and a copy of the FTC Official Staff Commentary to the Fair Credit Reporting Act are included under "Fair Credit Reporting Resources", available from LAWDOG Credit Reporting Center, or here. Use browser return button to return. Read Notices, Caution and Disclaimer.

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