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What is an Adverse Action Notice? |
An adverse action notice is to inform you that you have been denied credit, employment,
insurance, or other benefits based on information in a credit report. The
notice should indicate which credit reporting agency was used, and how to
contact them. |
You are entitled to a free credit report if: |
1. |
You were denied or were notified of an adverse action related to
credit, employment, insurance, a government license, or other government
granted benefit within the last 60 days and a credit report was used
in the decision process. |
2. |
You were denied a house or apartment rental or were required to pay
a higher deposit than normally required within the last 60 days and
a credit report was used in the decision process. |
3. |
You certify that you are unemployed and intend to apply for employment
within the next 60 days. |
4. |
You certify that you are a recipient of public welfare assistance. |
5. |
You certify that you have reason to believe your credit report contains
inaccurate information due to fraud. |
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The Notice |
The adverse action notice may be oral, in writing, or in electronic form, and must be received within a reasonable amount of
time.
The adverse action notice must:
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1. |
Give notice of the adverse action; |
2. |
Give the name, address, and telephone number of the credit reporting
agency which provided the credit report (the telephone number must be
toll free if the agency compiles and maintains consumer files on a nationwide
basis); |
3. |
Include a statement that the credit reporting agency did not make
the decision to take the adverse action and is unable to provide the
consumer the specific reasons why the adverse action was taken; |
4. |
Give notice of the consumer's right to obtain a copy of the credit
report from the credit reporting agency; and |
5. |
Give notice of the consumer's right to dispute with the credit reporting
agency the accuracy or completeness of any information in the credit
report. |
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