Question

What is the bank required to provide according to the guidelines after taking adverse action based on a consumer report?

a) Adverse action notice with the name, address, and telephone number of the consumer reporting agency.
b) A verbal notice to the consumer.
c) A written notice without any specific details.
d) A notice only if adverse information is present in the report.

Answer 1

According to the guidelines, the bank is required to provide an adverse action notice with specific details after taking adverse action based on a consumer report.

Step-by-step explanation:

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. According to the guidelines, after taking adverse action based on a consumer report, the bank is required to provide an adverse action notice with the name, address, and telephone number of the consumer reporting agency.

This notice must be provided in writing and must include specific details regarding the adverse action taken, such as the reasons for the action and the adverse information from the consumer report that influenced the decision. Therefore, the correct answer is a) Adverse action notice with the name, address, and telephone number of the consumer reporting agency.