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Denied App-Send Adverse Action Notice Co-signer?

If we deny a​n application for a​ consumer installment loan ​from a ​consumer​ who applies with a ​cosigner, do we need to send a​n​ ​adverse ​action​ notice​ to the ​cosigner?

by Richard Insley:

See Reg. B, Section 1002.9(f).


by Randy Carey:

Richard's reference to § 1002.9(f) of Regulation B reminds us that you only need to send one adverse action notice under that regulation, and it should go to the primary applicant (if one is apparent). However, there is also section 615(a) of the FCRA to consider, if the decision to deny the application is based in whole or in part on information from a consumer report. Whether there needs to be one notice combining the requirements of Regulation B and the FCRA depends on which applicant's consumer report includes the negative information used in the credit decision and whether that individual is a true co-applicant or applied as a guarantor.

The Federal Trade Commission's Stinneford Advisory Opinion (#07-14-00), issued in July 2000, analyzes the two requirements and offers guidance on the question. Rather than attempt to digest it here, I recommend that you read the analysis, which can be found at

First published on 11/05/2017

Last updated on 02/02/2018

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