Adverse Action Notice

Adverse Action Notice Template to Notify Applicants About a Decision Based on Their Report
An adverse action notice is a written notice that tells a person they were denied a job, home, loan, or other service, fully or partly because of information in a consumer report, such as a background check or credit report. It names the decision, the company that provided the report, and explains the person's right to see the report and dispute any errors. It works for job applications, rental applications, loan approvals, insurance requests, and credit card applications. Without a proper notice, a business may break consumer protection rules, and the applicant may not know how to correct mistakes in their report.

Benefits of Using a Ready-Made Template Instead of Writing One Yourself
Writing an adverse action notice from scratch can be confusing, and it is easy to miss required details like the name and contact details of the reporting agency, a statement that the agency did not make the decision, or the person's right to a free copy of the report. A missing detail can lead to complaints or legal trouble. A ready-made Adverse Action Notice Template already includes all the key sections in simple language, so you only add your company and applicant details.

Who Can Use This Adverse Action Notice Template
This template is useful for employers, HR teams, recruiters, landlords, property managers, lenders, and insurance providers who use background or credit reports to make decisions. It is also helpful for small businesses and startups that screen applicants and want to follow the rules. You do not need legal experience to use it, and it helps you keep a clear and fair written record.

How to Fill Out and Use This Adverse Action Notice Correctly
Start by adding the date and the applicant's full name and address. State clearly the decision that was made, such as not hiring, not approving a rental, or denying credit. Name the consumer reporting agency that supplied the report, along with its address and phone number. Add a statement that the agency did not make the decision and cannot explain why it was made. Explain that the applicant has the right to ask for a free copy of the report within a set time, often 60 days, and to dispute any wrong or incomplete information. Include any credit score details if they were used. Add your company name, contact details, and signature, send it by email or post, and keep a copy for your records.