Adverse Action
Under the Fair Credit Reporting Act, the term “adverse action” is defined very broadly to include all business, credit and employment actions affecting consumers that can be considered to have a negative impact, such as denying or canceling credit or insurance, or denying employment or promotion. No adverse action occurs in a credit transaction where the creditor makes a counteroffer that is accepted by the consumer. Such an action requires that the decision maker furnish the recipient of the adverse action with a copy of the credit report leading to the adverse action.
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