Would there be a problem with using the adverse action notice for withdrawn applications and marking the "other" box and putting customer withdrew application?

The heading on that section is "Principal reasons for credit denial, termination or other action taken concerning credit".

Problem - YES! The AAN form is for adverse action.

The bank did not decide, the customer did. The bank does not need to tell the customer what they said. To document, put a simple memo in file with the date, and basic information.

example - 2/12/13 John called me today and withdrew his application. He's borrowing the money from his parents.

I do not like using the vendor supplied forms for "confirming" withdrawn loans, especially when created in an origination system that then attaches the credit score disclosures.

It is just simply creating confusion for customers (and bankers) who "learn" that this is adverse action. It is not.

Our AAN process is centralized. We DO use the software form to document the file. However, the form is title "Notice of Action Taken." And the action is disclosed as a withdrawn file. We do not send a copy to the customer.

Thanks everyone for their help.