What is the timeframe for delivering an adverse action notice?

The correct timeframe for delivering an adverse action notice is indeed within 30 days of taking adverse action on various applications. This is consistent with the provisions established under the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA). When a lender takes adverse action—which can include denial of credit, changing the terms of approval, or reducing credit limits—they are required to notify the affected consumer within this 30-day period.

The notice must include specific reasons for the adverse action or information on how the consumer can obtain those reasons. This ensures transparency and provides the consumer an opportunity to understand the decision and address any potential issues, such as incorrect information on a credit report.

Other options do not align with the established regulations. For example, delivering an adverse action notice within 15 days of application submission is not adequate since the timeline for notifying a consumer is based on when the adverse action is actually taken, not when the application is submitted. Additionally, the 60-day post-counteroffer timeline is incorrect because adverse action notices pertain to the decision made on credit applications, not counteroffers. Lastly, the stipulation of 10 days following a credit evaluation is also inaccurate as the 30-day rule applies more broadly to any decision