What is a Denial Letter With Reasons?

A Denial Letter with Reasons is also known as an Adverse Action Letter with Reasons.  It’s very similar to the Denial Letter but it provides specific reasons for denial based on information in the applicant’s a consumer report. A form of this denial  letter must be provided to any rental applicant you choose to deny residency to if that decision is based solely or partly on information in a consumer report. While oral adverse action notices are allowed, written notices provide proof of FCRA compliance. Use our free denial letter with reasons now.

The notice must include:

  • The name, address and telephone number of the Credit Reporting Agency (CRA) that supplied the consumer report, including a toll-free telephone number for CRAs that maintain files nationwide;
  • A statement that the CRA that supplied the report did not make the decision to take the adverse action and cannot give the specific reasons for it; and
  • A notice of the individual’s right to dispute the accuracy or completeness of any information the CRA furnished, and the consumer’s right to a free report from the CRA upon request within 60 days.
  • Disclosure of this information is important because some consumer reports contain errors.

The Denial Letter with Reason is required even if information in the consumer credit report was not the main reason for the denial, the increase in security deposit or rent or other adverse action. In fact, even if the information in the report plays only a small part in the overall decision, the applicant still must be notified.


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