AAN on New Account

Answered by:

Question:

Do we give an adverse action notices when we turn down an account?

Answer:

You give an adverse action notice when you turn down an account because of information contained in a consumer report. You may also turn down accounts for other reasons but you do not have to give an adverse action notice in those instances that do not involve a third-party report. In these cases, usually a verbal reason is sufficient. Your customer may simply not have proper identification or maybe a high- risk customer that your financial institution has chosen to decline.

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Learn more about Deborah Crawford's webinar 20 Tasks of the New Account Interview