3. Which of the following statements about an individuals credit record, is/are False
ADVERSE ACTION
If you take adverse action against a consumer based on information in a consumer report, you must tell the consumer. The most common type of adverse action is a denial of credit. Adverse action is defined in the Equal Credit Opportunity Act and the FCRA to include:
- a denial or revocation of credit
- a refusal to grant credit in the amount or terms requested
- a negative change in account terms in connection with an unfavourable review of a consumer’s account
Denying a consumer’s request for additional credit under an existing account generally isn’t considered an adverse action but changing the terms of the existing account can be.