Adverse Action Notice

A required FCRA notice when a landlord denies or modifies an application based on a consumer report.

An adverse action notice is a written communication required by FCRA whenever a landlord denies an application, requires a higher deposit, requires a co-signer, or otherwise takes an unfavorable action that was influenced by information in a consumer report. The notice must identify the consumer reporting agency, state that the agency did not make the decision, and inform the applicant of their right to dispute the report. The notice must be sent within 30 days of the adverse decision and is one of the most commonly missed compliance requirements in MHP operations.

Related Terms

FCRA (Fair Credit Reporting Act)

The federal law governing how landlords and operators can use consumer credit reports.
Tenant Screening

The process of evaluating a rental applicant's creditworthiness, history, and suitability.

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