Adverse Action Notice for Credit Suspension?
by Jack Holzknecht, BOL Guru Guru BIOS
Question: If a line of credit account is delinquent, is it necessary to send an adverse action notice if the credit limit is suspended or terminated due to delinquency?
Answer: No. According to paragraph 2(c)(2)(ii)2 of the Reg B Commentary, "The term adverse action does not include a creditor’s termination of an account when the accountholder is currently in default or delinquent on that account."
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.