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Property management glossary
Leasing & residents

Adverse action notice

Plain-English definition

A notice explaining an unfavorable rental decision that was based partly or entirely on information in a consumer report.

What adverse action notice means in practice

Under the federal Fair Credit Reporting Act, a landlord may need to send this notice after denying an applicant or changing the offered terms because of a screening report. It typically identifies the reporting company and explains the applicant’s rights; state and local rules may add requirements.

Example

A screening report leads an owner to require a co-signer. The owner sends the required notice with the screening company’s contact information and dispute instructions.

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This glossary is educational and not legal, tax, lending, or accounting advice. Rules and terminology can vary by jurisdiction and professional context.