Adverse Action


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.

BREAKING DOWN '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.

  1. Equal Credit Opportunity Act - ...

    A regulation created by the U.S. government that states that ...
  2. Credit Report

    A detailed report of an individual's credit history prepared ...
  3. Credit Score

    A statistically derived numeric expression of a person's creditworthiness ...
  4. Insurance Score

    A rating computed and used by insurance companies that represents ...
  5. Underwriting

    1. The process by which investment bankers raise investment capital ...
  6. Jamming

    A scam perpetrated by bogus credit repair firms that involves ...
Related Articles
  1. Home & Auto

    How An Insurance Company Determines Your Premiums

    Find out how insurers use credit history to build an insurance score and how it could affect your bottom line.
  2. Credit & Loans

    How To Dispute Errors On Your Credit Report

    It just takes some time and effort to rebound from a nasty case of "credit rejection shock."
  3. Home & Auto

    6 Tips To Get Approved For A Mortgage

    You can change your bank's answer to a loan request from 'No' to 'Yes'. Find out how.
  4. Credit & Loans

    The History Of Consumer Credit Rights

    The Fair Credit Billing Act of 1974 gave consumers the power to dispute credit card charges.
  5. Investing

    How to Raise Your Credit Score Quickly

    Here are the best tips for raising your credit score quickly.
  6. Credit & Loans

    5 Common Misconceptions About Your Credit Report

    Your credit report is one of the most important factors in determining your ability to get loans and new credit and has a major influence on your rates.
  7. Personal Finance

    What Happens To Your Student Debt If You Die?

    What happens to student debt when you die? It all depends on the lending agency.
  8. Credit & Loans

    How ‘Real’ Is Your Free Score From Credit Karma?

    A free credit score sounds good, but is it worth giving up your personal information to get one online?
  9. Credit & Loans

    4 Ways to Check Credit Card Accounts for Trouble

    Credit cards do offer some protection against fraud, but here are 4 reasons to be vigilant and protect your credit score against scammers and mistakes.
  10. Credit & Loans

    7 Tips To Bounce Back From Credit Score Disasters

    If you think your credit score is beyond repair, think again. It’s possible to rebuild a sagging score, even if the culprits were bankruptcy or foreclosure.
  1. Is it possible to get a free credit report from Equifax?

    It is possible to get a free credit report from Equifax, as well as the other two major credit bureaus, Experian and TransUnion. ... Read Full Answer >>
  2. Do free credit reports affect your credit score?

    Free credit reports do not impact your credit score. Credit inquiries are divided into two categories: soft inquiries and ... Read Full Answer >>
  3. Does a free credit report show your credit score?

    The free credit reports available from the three credit reporting agencies do not include your credit score. Under the 2 ... Read Full Answer >>
  4. Is getting a free credit report safe?

    Getting a free credit report can be safe if you are careful about the particular website from which you get it. Credit reports ... Read Full Answer >>
  5. How accurate are free credit reports?

    Free credit reports are usually considered mostly accurate, which is why it is important to regularly examine your own reports. ... Read Full Answer >>
  6. Can Sallie Mae report you to a credit bureau?

    A credit bureau, referred to primarily in the United States as a consumer reporting agency (CRA), is an entity that gathers ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
  2. Quick Ratio

    The quick ratio is an indicator of a company’s short-term liquidity. The quick ratio measures a company’s ability to meet ...
  3. Black Tuesday

    October 29, 1929, when the DJIA fell 12% - one of the largest one-day drops in stock market history. More than 16 million ...
  4. Black Monday

    October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ...
  5. Monetary Policy

    Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ...
  6. Indemnity

    Indemnity is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability ...
Trading Center