Hi. We have an online checking account application. When an application is received it is downloaded and forwarded to a Personal Banker to pull credit, make a decision, and then to open the account or to send the Adverse Action Notice if denied. In my review today I’m finding that our PBs are skipping the co-applicants listed on these. Is it correct that per the FCRA the co-applicant must be provided an Adverse Action Notice even if NO credit report was obtained on him? Are there other compliance issues to consider or is this just bad business to skip over the co-applicant? Thanks in advance for your help!
Section 615a of the Fair Credit Reporting Act states, “If any person takes any adverse action with respect to any consumer that is based in whole or in part on any information contained in a consumer report, the person shall
(1) provide oral, written, or electronic notice of the adverse action to the consumer;”
The notice is not required for a consumer for a consumer report was not obtained.