New Adverse Action Notices Required For Deposit-Related Actions
Monday, 18 July 2011 07:39

Last Friday, the Federal Reserve published final rules amending Regulation B (Equal Credit Opportunity) and Regulation V (Fair Credit Reporting) to require disclosure of credit scores to consumers when taking adverse action.  The revised rules amend the adverse action forms required to be delivered to consumers when a credit score is used as part of the decision to take adverse action against a consumer.  The final rule amending Regulation B makes clear that the Fed intends for the new requirements and forms required under Regulation V to apply to both credit and non-credit related (deposit) adverse actions.  See page 41597 of the Federal Register under the heading “Adverse Actions Not Limited to Credit.”  Credit unions who use a credit score to take adverse action in connection with a deposit account will need to use the new forms required by amended Regulation V to notify consumers of the action taken.

 

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