cancel
Showing results for 
Search instead for 
Did you mean: 

Legal Notifications On Declined Applications

Regular Contributor

Legal Notifications On Declined Applications

Has anybody any idea what notifications are required from a creditor when they do not approve a credit card application?  If legal notifications are not furnished, what recourse does a consumer have?

Message 1 of 3
2 REPLIES
Moderator Emeritus

Re: Legal Notifications On Declined Applications

I'm not 100% sure on this, and hopefully someone will chime in, but I believe they are required to notify you of their decision and give you the CRA they pulled the information from.  This would entitle you to a free pull of that CRA.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 2 of 3
Community Leader
Epic Contributor

Re: Legal Notifications On Declined Applications

Decliing credit is considered an "adverse action" under the FCRA, and the responsibilities of the creditor are set forth in FCRA 615 if their delination was based in whole or in part on information in a consumer credit report.

 

In a nutshell, they must provide the name and address of the CRA they obtained the report from, and provide the consumer notice that they can mail a copy of the declination letter to the CRA within 90 days and receive a free copy of their CR from the CRA.  The credtior is not required to provide a copy of the report.

That fine print should have been included in their letter.

 

If they failed to do so, that is a violation of the FCRA, which would be pursued either administratively by complaint to the FTC or by bringing civil action against them.

 

Message 3 of 3