Adverse Action Notice

The notice required by the Equal Credit Opportunity Act advising a credit applicant or existing debtor of the denial of their request for credit or advising of a change in terms considered unfavorable to the account holder.

The notice required by the Equal Credit Opportunity Act advising a loan applicant or existing debtor of the denial of their request for credit or advising of a change in terms considered unfavorable to the borrower. Freezing the line of credit on a home equity loan requires the financial institution to send the adverse action notice to the borrower describing why the financial institution froze the line.