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Time Frame to Provide Notice of Action Taken

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Question: 
When denying a deposit account due to negative credit information, we supply to the customer a written notice of action taken. Within what period of time does that notice need to be given to the customer?
Answer: 

The Fair Credit Reporting Act requires an adverse action notice to be delivered when you deny a product or service, such as a loan or a deposit account. There are separate rules concerning credit reports being used for employment. The adverse action notice is separate and different from that required under Reg B, which requires reasons concerning denial of credit. While Reg B may include the FCRA adverse action notice and it has specific timing requirements, there is no such timing requirement under the FCRA. We recommend you provide as soon as applicable or no later than the Reg B timing requirements, just to keep the rules simple.

First published on BankersOnline.com 10/22/07

First published on 10/22/2007

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