ARLINGTON, Va.—With renewed supervisory emphasis by NCUA on adverse action notices, NAFCU said it is highlighting the differences in how adverse action is defined under Regulation B and the Fair Credit Reporting Act (FCRA) and provides clarity on when notice is required.
"Once a credit union has established it has taken adverse action, the credit union then needs to determine whether an adverse action notice is required under Regulation B or the FCRA and when they are due," said NAFCU Regulatory Compliance Counsel David Park. "The trigger for whether Regulation B requires an adverse action notice is the act of taking ‘adverse action.'"
Park added that Regulation B's timing requirements for adverse action notices "depend on what was received by the credit union or what it did."
"If the credit union received a completed credit application, then it has 30 days to determine whether to approve the application, deny it or make a counteroffer; and it needs to notify the member within that 30-day window," he said.