Is the Bank required to give an adverse action notice if it takes adverse action against a consumer seeking to open a deposit account solely based on past history with the Bank? The bank did not run the consumer through Chex systems nor did it pull any other type of consumer report.
No. The ECOA only applies to credit applications. FCRA covers any person who takes adverse action against a consumer, but the decision to take adverse action is based on information contained in a credit report. Since, the bank did not take adverse action against the consumer based on information contained in a credit report, it is not required to send an adverse action notice.
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