Question

Why is option C the correct choice for addressing the bank's need to provide an adverse action notice?

A) The bank used the report when making its credit decision.
B) The notice was provided verbally.
C) It includes the name, address, and telephone number of the consumer reporting agency.
D) The consumer is not required to contact the agency.

Answer 1

Option C is correct because under the Fair Credit Reporting Act, adverse action notices must provide the contact information of the consumer reporting agency that supplied the credit report used in the decision.

Step-by-step explanation:

The correct choice for addressing the bank's need to provide an adverse action notice is option C) It includes the name, address, and telephone number of the consumer reporting agency.

This option is correct because, under the Fair Credit Reporting Act (FCRA), when an adverse action is taken, such as a denial of credit, the financial institution is required to provide the applicant with a notice that includes the contact information for the consumer reporting agency that supplied the report used in the credit decision. This notice should also inform the consumer of their right to a free credit report from the agency and the right to dispute any inaccuracies on the report.