Debit Card "Notice of Action Taken"

Question:

We have recently started issuing debit cards and are not sure which "notice of action taken" should be used when a customer is declined a card. We have different types for loans and deposit products. Which should we use?

Answer:

If you are denying a deposit product, such as a debit card, and you use the applicant's credit report (including Chex Systems) adversely, then you must provide a Fair Credit Reporting Act notice. This is the same rule that applies to credit applicants. However, you are not required to provide deposit product applicants with a notice of action taken -- only the FCRA notice.

First published on BankersOnline.com 10/18/04