When you apply for a loan, insurance, or housing, you may be eager to receive notice of your approval. However, if you receive an adverse action notice instead, it can flip your world upside down. As such, understanding what this letter is, when it is necessary, and the importance of working with a Los Angeles, California credit report lawyer to discuss your legal options is critical. The following blog explores what you should know about these complicated matters.
What Is an Adverse Action Notice?
When you apply for a loan, insurance, an apartment, or even a job, your information will be shared the the entity responsible for approving the application. This is crucial, as a landlord, for example, wants to ensure you are a good tenant before offering you the unit. In many instances, they will run a background or credit check against you. If they uncover information that leads them to deny your application, they must notify you through an adverse action notice. This can be a physical piece of mail or an electronic notification.
Commonly, if you have too much debt, continually make late payments, your credit score is too low, or you have recently filed for bankruptcy, you can be denied an application.
In this notification, the organization must tell you the reason you were denied, the name of the credit reporting agencies that supplied the report used to make their decision, inform you of your consumer rights, and include details on how to dispute this outcome. Additionally, you have the right to obtain a free credit report within 60 days of the denial due to information on the report.
Can I Dispute the Outcome of This Decision?
If you review the reason for the denial and check your credit report, you may find that incorrect information on the report has impacted the outcome of your application. As such, if you locate inaccurate details on your credit report, you have the right as a consumer under the Fair Credit Reporting Act to have these errors investigated and remedied.
For example, if a debt listed twice has negatively impacted your credit report, you may find that it lowers your credit score significantly, ultimately resulting in your denial. As such, you can file a dispute with the company by writing a letter explaining the error, including a hard copy of your report with the error highlighted, and providing any additional evidence to support your claim that this is an error.
While you may be unable to directly dispute this error with the agency responsible for approving or denying a loan, it’s in your best interest to dispute the errors with the reporting agency. Once the error is removed, it’s important to understand that the change may not be immediately reflected. As such, it’s in your best interest to monitor your credit and wait until your score improves before reapplying for housing or credit.
As you can see, errors on your credit report can lead to a litany of issues. That is why it is in your best interest to connect with an experienced credit report error lawyer to discuss your legal options if you have been denied loans, housing, or other opportunities due to these mistakes. At Los Angeles Legal Solutions, our firm understands how difficult these matters can be, which is why we will do everything possible to assist you through these complicated times. Contact us today to learn how we can fight for you.
