@RobertEG wrote:
Are they using it to refer to an action taken as a result of the card being maxed, or only with regard to the card being maxed.
FCRA 603(k)(1). Actions included. The term “adverse action”
- (A) has the same meaning as in section 701(d)(6) of the Equal Credit Opportunity Act; and
- (i) a denial or cancellation of, an increase in any charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of, any insurance, existing or applied for, in connection with the underwriting of insurance;
- (ii) a denial of employment or any other decision for employment purposes that adversely affects any current or prospective employee;
- (iii) a denial or cancellation of, an increase in any charge for, or any other adverse or unfavorable change in the terms of, any license or benefit described in section 604(a)(3)(D) [§ 1681b]; and
- (iv) an action taken or determination that is made in connection with an application that was made by, or a transaction that was initiated by, any consumer, or in connection with a review of an account under section 604(a)(3)(F)(ii)[§ 1681b]; and adverse to the interests of the consumer.
Ok.... well....
I always thought it was just the CCC did not like something they see in the way the cardholder is using the card, which can cover a lot of possibilities and seems to vary by lender,
but the end result of Adverse Action is the CCC either Credit Limit Decreases (CLD) the account, does a Balance Chase, which is a series of CLD, closes the consumer account outright (no new charges, pay down according to the terms in effect at the moment of account closure), places a hard limit on a charge card (sometimes seen with AMEX chargers) or other restrictions on the account.
A situation where the CCC may have concerns about the financial status, annual income of the card holder can result in a Financial Review (FR) which is only an inquiry, though it can include certain temporary restrictions on the availability of the account until the FR is completed. At the point of the FR completion, the account may continue without restrictions, find certain restrictions in place for a time, or be subject to AA (see above).
. Yeah iwe use a lot of shorthand here for common things, AA being one of the most notable attention grabbing ones when it comes to thread popularity admittedly.
