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A creditor must disclose the principal reasons for denying an application or taking other adverse action. The regulation does not mandate that a specific number of reasons be disclosed, but disclosure of more than four reasons is not likely to be helpful to the applicant.

No one wants to get an adverse action notice ? but if you do, you can use that information to try to improve your credit going forward or fix any mistakes on your credit reports. The requirement for adverse action notices is an important protection that can help you better understand your credit.

A statement of action taken by the creditor. Either a statement of the specific reasons for the action taken or a disclosure of the applicant's right to a statement of specific reasons and the name, address, and telephone number of the person or office from which this information can be obtained.

Once a creditor has obtained all the information it normally considers in making a credit decision, the application is complete and the creditor has 30 days in which to notify the applicant of the credit decision.

Any creditor failing to comply with a requirement imposed by the Equal Credit Opportunity Act (ECOA) or Reg. B is subject to civil liability for actual and punitive damages of up to $10,000 in individual actions, and up to $500,000 (or one percent of the creditor's net worth, whichever is less) in class actions.

A creditor must notify the applicant of adverse action within: 30 days after receiving a complete credit application. 30 days after receiving an incomplete credit application.

Adverse action is defined in the Equal Credit Opportunity Act and the FCRA to include: a denial or revocation of credit. a refusal to grant credit in the amount or terms requested. a negative change in account terms in connection with an unfavorable review of a consumer's account 5 U.S.C.