What is an Adverse Action?

  1. Actions included. The term “adverse action”
    • (A) has the same meaning as in section 701(d)(6) of the Equal Credit Opportunity Act; and
    • (B) means
      • (i) a denial or cancellation of, an increase in any charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of, any insurance, existing or applied for, in connection with the underwriting of insurance;
      • (ii) a denial of employment or any other decision for employment purposes that adversely affects any current or prospective employee;
      • (iii) a denial or cancellation of, an increase in any charge for, or any other adverse or unfavorable change in the terms of, any license or benefit described in section 604(a)(3)(D) [ §  1681b]; and
      • (iv) an action taken or determination that is
        • (I) made in connection with an application that was made by, or a transaction that was initiated by, any consumer, or in connection with a review of an account under section 604(a)(3)(F)(ii)[ §  1681b]; and
        • (II) adverse to the interests of the consumer.
  2. Applicable findings, decisions, commentary, and orders. For purposes of any determination of whether an action is an adverse action under paragraph (1)(A), all appropriate final findings, decisions, commentary, and orders issued under section 701(d)(6) of the Equal Credit Opportunity Act by the Board of Governors of the Federal Reserve System or any court shall apply.