What is Adverse action letter? (Adverse action letter (ECOA/FCRA notice)) | Pinnacle Glossary


Glossary
Credit repair terms · FCRA · CROA

What is Adverse action letter?
A documentation-first definition.

Adverse action letter (Adverse action letter (ECOA/FCRA notice)). An adverse action letter is the written notice a creditor must send within 30 days of declining a credit application, increasing pricing, or taking similar unfavorable action. Required jointly by ECOA (15 USC section 1691) and FCRA (15 USC section 1681m), the letter must specify the principal reasons for the action.

Statute reference

15 USC § 1681m / § 1691

Read the statutory text on the Cornell Legal Information Institute: https://www.law.cornell.edu/uscode/text/15/1681m

Pinnacle's position

How Pinnacle applies this term.

Pinnacle requires the adverse action letter at intake for any mortgage-denial or credit-denial engagement. It identifies which accounts or score thresholds the lender flagged.

Pinnacle is a San Mateo, California-based forensic credit-repair firm operating under FCRA and CROA. Documentation-first dispute strategy; fixed-fee; capacity-limited; CROA compliant.

Related glossary terms

ECOA · FCRA

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