public-service · adverse action notice deadlines
Regulation B: Adverse Action Notice Deadlines and Content
What 12 CFR § 1002.9 requires lenders to tell applicants after a credit denial, and by when.
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Updated: Sources: 1
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What matters now
- Completed applications: creditors must notify within 30 days of receiving a completed application.
- Incomplete applications: notice is due 30 days after taking adverse action on an incomplete application.
- Existing accounts: notice is due 30 days after taking adverse action on an existing account.
- Counteroffers: notice is due 90 days after notifying the applicant of a counteroffer.
- Any statement of reasons must be specific and identify the principal reason(s) for the adverse action.
When a creditor takes adverse action on a credit application, the federal record governing consumer notification is 12 CFR § 1002.9, titled “§ 1002.9 Notifications.” This section of Regulation B sets four separate notification deadlines depending on the situation. It also requires that any statement of reasons given to the applicant be specific.
This original record-reading guide is a general reading aid, not cited evidence. It does not depict a source record; the article text and source links provide the facts.
Key points
- For completed applications, the rule specifies 30 days after receiving a completed application (12 CFR § 1002.9).
- For incomplete applications, the rule specifies 30 days after taking adverse action (12 CFR § 1002.9).
- For existing accounts, the rule specifies 30 days after taking adverse action (12 CFR § 1002.9).
- For counteroffers, the rule specifies 90 days after notifying the applicant (12 CFR § 1002.9).
- A statement of reasons must be specific and identify the principal reason or reasons (12 CFR § 1002.9).
The four notification deadlines
Section 1002.9 sets out four distinct timing triggers, each running from a different event:
- Completed applications. The creditor must act “30 days after receiving a completed application.” (12 CFR § 1002.9)
- Incomplete applications. If the creditor instead takes adverse action on an application that was never completed, the deadline is “30 days after taking adverse action on an incomplete application.” (12 CFR § 1002.9)
- Existing accounts. For adverse action taken on an account a consumer already holds, the deadline is “30 days after taking adverse action on an existing account.” (12 CFR § 1002.9)
- Counteroffers. Where the creditor has offered the applicant different terms, the deadline runs “90 days after notifying the applicant of a counteroffer.” (12 CFR § 1002.9)
What the notice must say
The record does not just impose a deadline — it sets a content standard for any statement of reasons the creditor provides. That statement “must be specific and indicate the principal reason(s) for the adverse action.” (12 CFR § 1002.9) The current text of the section carries the citation “[76 FR 79445, Dec. 21, 2011, as amended at 88 FR 16537, Mar. 20, 2023]” (12 CFR § 1002.9).
What this article does not answer
This article states only what 12 CFR § 1002.9 says about notification timing and the specificity standard for a statement of reasons. It does not address whether any particular denial or adverse action decision was lawful — that depends on facts and legal analysis outside this text. It also does not cover any other notice obligations that may apply under separate federal consumer-credit regulations.