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. Underwriting

    1. The process by which investment bankers raise investment capital ...
  2. Credit Report

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

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

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

    A regulation created by the U.S. government that aims to give ...
  6. Credit Card Authorized User

    Definition of an authorized user of a credit card.
Related Articles
  1. Home & Auto

    How An Insurance Company Determines ...

  2. Credit & Loans

    How To Dispute Errors On Your Credit ...

  3. Home & Auto

    6 Tips To Get Approved For A Mortgage

  4. Credit & Loans

    The History Of Consumer Credit Rights

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center