legal
Adverse Action Notice
An adverse action notice is a written statement a lender must send when they deny credit, explaining the principal reasons for the decision.
Last updated Reviewed by ICG Funding
Definition
What it means.
Under the Equal Credit Opportunity Act (ECOA) and Fair Credit Reporting Act (FCRA), business credit applicants are entitled to an adverse action notice within 30 days of a denial. The notice must list specific, principal reasons, not generic language, and name any consumer reporting agency involved.
Adverse action notices are useful. They tell you exactly what to fix, DSCR, time in business, credit history, before reapplying. ICG issues adverse action notices on every denied application per ECOA regulation B.
Now what?
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