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#606643 - 08/29/06 07:57 PM AI Letters / Adverse Action
Lablover Offline
New Poster
Joined: Oct 2004
Posts: 16
Newark, DE
Are the Reg B and FCRA required notices for adverse action needed on an "Additional Information" letter sent to a customer because USPA information provided by the customer does not match the credit report information used for verification. Seems to be some disagreement here because some folks feel it is necessary as the credit report has been accessed and used for verification purposes (not for the credit decision). The AI letters indicate that if no response is received this is the adverse action notice.

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#606644 - 08/29/06 08:06 PM Re: AI Letters / Adverse Action
waldensouth Offline
Power Poster
waldensouth
Joined: Nov 2001
Posts: 7,981
FINALLY ABOVE the gnat line
Was no other documentation obtained from the customer to verify their address? If the customer could provide none, then I would send an adverse action notice for "unable to verify information contained on the application".
_________________________
"Once you learn to read, you will be forever free."

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My Opinion Only.

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#606645 - 08/30/06 03:55 PM Re: AI Letters / Adverse Action
Rick Kohrumel, CRCM Offline
New Poster
Rick Kohrumel, CRCM
Joined: Aug 2006
Posts: 1
Atlanta, GA
If you used a credit report to note the disparity in USPA, then YES , the FCRA notice requirement is triggered because you "relied wholly or in part" on information obtained in a credit report. In general, though, the incomplete application provision of Reg B - preempting the need for an AA form - is caused by the bank failing to get one or more pieces of information from the consumer, and not from anything conflicting in the credit report (in which case the FCRA notice is not triggered).

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#606646 - 09/23/06 06:00 PM Re: AI Letters / Adverse Action
Lucy Griffin Offline

Diamond Poster
Lucy Griffin
Joined: Nov 2000
Posts: 1,544
If you are merely asking for additional information or information to resolve a discrepancy, you have not yet made a decision and have not yet triggered adverse action under either rule. FCRA defers to Regulation B for the definition of adverse action.

The request for additional information or notice of incompleteness is not a decision notice, however Regulation B allows you to anticipate a non-response by setting a deadline for the consumer to respond. Granted, the FCRA definition of adverse action is a bit vague, however it specifically refers to and defers to the defintion in Regulation B. I would therefore use the Regualtion B treatment of the request for additional information. You have not yet made a decision or taken adverse action.

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