Definition Of Adverse Action

31 Dec Definition Of Adverse Action

What does the term Adverse Action mean?

The Fair Debt Collection Practices Act (FDCA) and the Equal Credit Opportunity Act (ECOA) use the same definition for Adverse Action.

Adverse Action includes any of the following:

  • The refusal to grant credit in substantially the amount or on substantially the terms requested;
  • Termination of credit or an unfavorable change in the terms for extending credit;
  • The refusal to increase the amount of credit when application is made for an increase.

If adverse action is taken by a creditor, the creditor is then required to notify the consumer of the nature of the adverse action, and the creditor is also required to provide the consumer with the name of the credit reporting agency that provided the information used in coming to the adverse action.

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I've been a consumer bankruptcy lawyer for nearly 25 years. Since that time I have helped many people resolve their financial problems. I have been practicing law since 1986 and I am licensed to practice in all state and federal courts in the State of Louisiana. Because I am a sole practitioner, you know that your debt matters are being handled by me personally. In addition to my work with consumers, I am also frequently asked to speak at local seminars on bankruptcy law. I am member of the following organizations: • Louisiana Bar Association • National Association of Consumer Bankruptcy Attorneys • Bankruptcy Law Network My office is located at: 3920 General DeGaulle Drive, New Orleans, LA 70114 Telephone: (504) 368-4101

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