Adverse Action Notice

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Under the Equal Credit Opportunity Act, an Adverse Action is when a creditor refuses to grant credit on the terms requested, termination of an existing account, or an unfavorable change in an existing account

An Adverse Action Notice is required by the Equal Credit Opportunity Act advising a credit applicant or existing debtor of the denial of their request for credit or advising of a change in terms considered unfavorable to the account holder.