Adverse Action


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Adverse Action

The denial of an application for credit because of insufficient credit history or negative information on one's credit report. For example, one may be denied a loan to buy a house because of a recent bankruptcy. This denial is called an adverse action.
References in periodicals archive ?
The circuit court held that because the GEICO plaintiff would have received a lower rate for his insurance had the information in his consumer report been more favorable, an adverse action has been taken against him.
The term adverse action does not encompass a refusal to extend additional credit under an existing credit agreement, whether the requesting applicant is currently in default, otherwise delinquent, or a refusal to extend credit beyond a prior established credit limit.
31) The FCRA states that "any person [who] takes any adverse action with respect to any consumer that is based in whole or in part on any information contained in a consumer report" must notify the affected consumer.
This Note analyzes workplace retaliation in Massachusetts after Burlington Northern, highlighting the need for Massachusetts to adopt an updated standard for proving an adverse action under Chapter 151B.
He also noted that the decision rejects the notion of a "best rate" argument, thereby avoiding "hyper-notification" of consumers that would have denigrated the value of an adverse action notice.
Problems with the accuracy of information contained in Adverse Action Reports in the NPDB continue, largely because of legal limitations imposed on the scope of review performed by the data bank.
In the retaliation context, adverse action is defined broadly as "action that is 'materially adverse' meaning any action that might well deter a reasonable person from engaging in protected activity.
The trial judge accepted the evidence of the Institute's CEO, Dr Harvey, who testified that her reasons for taking adverse action did not include the fact that Mr Barclay was a union delegate or had participated in union activity.
This volume on legal procedures relating to federal civil service employment provides an in-depth analysis of processes for adverse action and performance based actions in disciplinary proceedings for employees.
There are a host of hot topics within the adverse action area where the courts are divided not only across the country, but even within their own circuit," says Littler Mendelson Shareholder Gregory Keating.
Will follow the FCRA rules concerning disclosure, authorization, notice and adverse action notices.
Before taking an adverse action based upon information received, employers should allow applicants a reasonable opportunity to explain.