Adverse Action

AAA

DEFINITION of 'Adverse Action'

An action that denies an individual or business credit, employment, insurance or other benefits. An adverse action is generally taken by a business or government based on a criminal past or information found in credit reports.

INVESTOPEDIA EXPLAINS 'Adverse Action'

Adverse action is defined in various laws passed by Congress, including the Equal Credit Opportunity Act and the Fair Credit Reporting Act. In the event of an adverse action, applicable law describes the various remedies that may be taken. For example, if a consumer is turned down for a loan because of negative information contained in a credit report, he or she can review the report at no cost.

RELATED TERMS
  1. Credit Report

    A detailed report of an individual's credit history prepared ...
  2. Insurance Score

    A rating computed and used by insurance companies that represents ...
  3. Credit Score

    A statistically derived numeric expression of a person's creditworthiness ...
  4. Equal Credit Opportunity Act - ...

    A regulation created by the U.S. government that aims to give ...
  5. Underwriting

    1. The process by which investment bankers raise investment capital ...
  6. Gray Charges

    Fees consumers pay via credit card or debit card for unwanted ...
Related Articles
  1. How An Insurance Company Determines ...
    Home & Auto

    How An Insurance Company Determines ...

  2. How To Dispute Errors On Your Credit ...
    Credit & Loans

    How To Dispute Errors On Your Credit ...

  3. 6 Tips To Get Approved For A Mortgage
    Home & Auto

    6 Tips To Get Approved For A Mortgage

  4. The History Of Consumer Credit Rights
    Credit & Loans

    The History Of Consumer Credit Rights

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center