An adverse action notice is required by law per the FCRA.
There are several adverse actions a landlord may take against a tenant which include rejecting the tenant, requiring one or more co-signers, requiring a change in the security deposit different from a qualified tenant, or an increase in rent for this specific applicant.
AAOA's declination letter includes the information required by the FTC to be included in all adverse action notices. This includes:
- The consumer reporting agency where the report was obtained along with their address and phone number
- A statement for the tenant clarifying the consumer reporting agency did not make the adverse action decision
- A notice that it is the tenant’s right to dispute the accuracy or completeness of any information in the report provided to the landlord and they have the option to request a free copy of the report if requested within 60 days
AAOA strongly recommends a written notice of adverse action. While the FCRA does allow an oral notice, written communication provides proof of compliance.