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Adverse Action Notice - Technical Error

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If while auditing our adverse action notices we discover a technical error, such as the wrong box being checked, may we amend the issue by sending a corrected adverse action notice or would an auditor still cite us?

Regulation B does not contain a method for amending. You will be cited for the error having occured and gain positive points for having caught it yourself. Whether the positives outweigh the negatives, depends on the nature of the error. For example, if it was the result of a procedural problem, such as loan secretaries filling out notices without instruction from the loan officer, there is likely to be a citation. If it was simply an error because someone had a bad day, the fact that you caught it outweighs the negatives.

Before you decide whether to send a corrected notice, consider what information or misinformation was given to the consumer. It may simply be a good idea to advise the consumer of the correction. In many other situations, it will be better to let sleeping dogs lie and focus on training and procedures.

First published on 11/09/09

First published on 11/09/2009

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Filed under compliance as: 

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