Adverse Action Code

From Open Risk Manual


Adverse Action Code is an indicator / explanation as to why an application for credit may have been rejected. When adverse action (e.g., rejection) is based in whole or in part on a Credit Score obtained from a consumer reporting agency (CRA), creditors must disclose key factors that adversely affected the score, the name and contact information of the CRA, and additional content.


US law prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act.[1]

See Also


  1. The Equal Credit Opportunity Act, 15 U.S.C. 1691 et seq.