An adverse action is when you apply for credit, employment or insurance and 1) your credit application is denied; or 2) a counterproposal is made upon terms worse than what you requested and you do not accept the counterproposal.  If adverse action is taken the creditor or party relying on the credit report must notifiy you of the adverse action, identify the reporting agency from which the report was obtained, and give you a summary explanation of the bad information in your credit file, (i.e. late payment, charge off, repossession, inadequate credit history, debt too high for income.)    The failure to do this is a violation of the Fair Credit Reporting Act and/or the Equal Credit Opportunity Act. 

 
The law discussed on this site is Texas law pertaining to Texas situations. NO advice is given for any transaction or situation that does not involve Texas law.

Mr. Aschermann is licensed to practice law in the State of Texas and is board Certified in Consumer and Commercial Law by the Texas Board of Legal Specialization but Mr. Aschermann is not licensed to practice law in any state other than Texas.