We will have a second chance checking product soon. If a customer comes in and asks for one of the other checking by name, but the Qualifile score response only allows the second chance checking to be opened and the customer declines the offer, is an AAN required?

Counteroffers are of concern when it comes to credit requests and Regulation B. I suppose, though that we still need to determine whether offering to open a "second chance" account is adverse action (is an action or determination that is adverse to the interests of the consumer).

If it's an adverse action, and if the Qualifile score is a consumer report, FCRA section 615(a) kicks in.

Yes, I would provide an AAN.

Let's divide "adverse action" between two dovetailing Regs, Reg B, not applicable here, and FCRA, definitely applicable here.

The FCRA requires a notice when a product or service is denied, and you based that decision in whole or in part on a consumer credit report. FCRA 615.

This is why ChexSystems and the likes provide AAN pads to those using the service. Qualifile uses ChexSystems as I recall.

Andy, when you say "AAN pads," are you referring to a little tear off pad that has minimal info, but is a declination? Another banker mentioned these to me before, as I have never seen them, but we were never able to come to terms with how these worked compliantly (not providing the score details) when the denial was based on the Chexsystems score determinant/recommendation. Apologies for being a bit off topic here, but it is the first time since that last conversation I've seen this come up.