What must occur for a notice to be required in terms of existing accounts?

For a notice to be required regarding existing accounts, an unfavorable change to account terms must occur. This pertains to compliance with regulations that mandate lenders and creditors to inform consumers when any significant negative alteration is made to the terms of their accounts. Such unfavorable changes can include increases in interest rates, changes in fees, or modifications to the account's conditions that could lead to adverse effects on the consumer's financial obligations.

This requirement ensures transparency and allows consumers to be aware of any modifications that could affect their financial circumstances. Being informed enables them to make better decisions regarding their accounts, such as choosing to close the account or seek alternative options.

In contrast, other scenarios, like a low credit score or a closed account, do not trigger this kind of notification. Likewise, a request for a credit review by the applicant does not automatically necessitate informing them about account terms; it is primarily driven by the lender's actions concerning the loan agreement. Thus, the requirement for notification is explicitly linked to unfavorable changes to the account terms themselves.