Question

Under which law, how long does the creditor have to send an applicant an adverse action disclosure?

Answer 1

Creditors must send an adverse action disclosure to an applicant within 30 days of taking adverse action based on their credit report.

Step-by-step explanation:

The time frame for a creditor to send an applicant an adverse action disclosure is governed by the Fair Credit Reporting Act (FCRA).

According to the FCRA, creditors must provide the adverse action disclosure within a reasonable timeframe, but no later than 30 days after taking adverse action based on the applicant's credit report. Adverse action can include denying credit, increasing interest rates, or changing the terms of credit.

For example, if a creditor decides to deny a loan application because of information in the applicant's credit report, they must send the adverse action disclosure to the applicant within 30 days.