Adverse action notice
Federally required written notice a lender must send within 30 days of denying a credit application. Discloses the specific reasons for denial and the credit bureau whose report was used.
Full definition
Under the Fair Credit Reporting Act and the Equal Credit Opportunity Act, any lender that denies a credit application must send the applicant a written 'adverse action notice' within 30 days. It must include the specific reasons for denial (or the right to request them), the name and contact of the credit bureau whose report was used, your right to a free copy of that credit report within 60 days, and your right to dispute inaccurate information. The adverse action notice is the borrower's roadmap for understanding the decline and addressing the underlying issues.
- Written by
- Get Advance Loan Editorial Team
- Reviewed by
- Compliance Review
- Published
- January 15, 2026
- Last reviewed
- May 22, 2026
- TILA (Truth in Lending Act)The federal law that requires lenders to disclose loan terms, APR, fees, and the schedule of payments before a borrower signs.
- FCRA (Fair Credit Reporting Act)The federal law that governs credit reports and credit-bureau practices, including your right to a free annual report and to dispute errors.
- ECOA (Equal Credit Opportunity Act)The federal law that prohibits lender discrimination based on race, religion, sex, marital status, age, national origin, or receipt of public assistance.
- MLA (Military Lending Act)Federal law capping consumer-credit APRs to active-duty service members and their dependents at 36% (the Military APR, or MAPR).
- CFPB (Consumer Financial Protection Bureau)The federal agency that supervises and enforces consumer financial-protection laws across most U.S. lenders.
- TCPA (Telephone Consumer Protection Act)The federal law governing telemarketing calls and texts, including the prior-express-written-consent requirement for autodialed marketing.
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