As a business attorney with over 12 years drafting compliance documents for U.S. employers, landlords, and lenders, I’ve written hundreds of adverse action notices under the Fair Credit Reporting Act (FCRA). One of the questions I hear most often is: “Where can I get a reliable, up-to-date adverse action notice template that won’t get me sued?” Today I’m giving you exactly that – a completely free, SEO-optimized adverse action notice template that meets current FCRA requirements, plus two real-world samples (employment background check and credit denial).
Important Disclaimer: This article and the downloadable templates are for informational purposes only and do not constitute legal advice. Always consult a licensed attorney in your state to ensure full compliance with federal and state laws.
The adverse action notice (sometimes called an “adverse action letter”) is a mandatory consumer protection document required by the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq. Failing to provide a properly formatted FCRA notice of adverse action can expose your company to statutory damages of $100–$1,000 per violation, plus punitive damages and attorney fees. I’ve seen six-figure settlements over sloppy letters – don’t let that be you.
An adverse action notice is required any time you take “adverse action” based in whole or in part on information in a consumer report (background check, credit report, tenant screening report, etc.). Common triggers include:
The notice has two stages: the pre-adverse action notice (sent BEFORE final decision) and the final adverse action notice (sent AFTER the decision is made).
Download Adverse Action Notice Template – Word .docx
Download Adverse Action Notice Template – PDF Version
Both files are 100% free, no email required. Updated for 2025 FCRA and CFPB requirements.
Here’s exactly how I draft pre-adverse letters for my employer clients:
| [Company Letterhead] [Date] [Applicant Name] [Applicant Address] Notice of Pre-Adverse Action Dear [Applicant Name], We are considering taking adverse action regarding your application for [position] based in whole or in part on information contained in a consumer report prepared by [Name of CRA, address, phone, website]. Enclosed is a copy of the report and a document titled “A Summary of Your Rights Under the Fair Credit Reporting Act” as required by federal law. You have the right to dispute the accuracy or completeness of any information in the report directly with [CRA name] within a reasonable period of time. You may also obtain a free copy of your report from the agency if you request it within 60 days. We will not make a final decision for at least five (5) business days from the date of this letter so that you have an opportunity to review and dispute the report if you wish. Sincerely, [Your Name] [Title] [Phone] | [Email] |
| [Company Letterhead] [Date] [Applicant Name] [Applicant Address] Notice of Adverse Action Dear [Applicant Name], We regret to inform you that your application for [credit product] has been denied. This decision was based in whole or in part on information obtained in a consumer report from: [Consumer Reporting Agency Name] [Address] [Phone] [Website] You have the right to obtain a free copy of the report from the agency within 60 days and to dispute any inaccurate or incomplete information. The specific reasons for this adverse action are: • [Reason 1 – e.g., High debt-to-income ratio] • [Reason 2 – e.g., Delinquent past or present credit obligations] A Summary of Your Rights Under the Fair Credit Reporting Act is enclosed. If you have questions, please contact us at [phone/email]. Sincerely, [Your Name] [Your Title] |
According to the official FTC and CFPB guidance (see CFPB Regulation B and FCRA text):
California, New York, Washington, and several other states have stricter rules. For example:
Always layer state requirements on top of federal – my template includes placeholders for these.
In my decade-plus reviewing plaintiff complaints, these are the top errors:
Do I need a pre-adverse letter if the candidate already knows about the issue?
Yes. The FCRA makes no exceptions for “they already knew.”
How long should I wait between pre-adverse and final?
The statute says “reasonable period.” Courts routinely uphold 5–10 business days.
Can I email the adverse action notice?
Yes, if you obtain prior consent under the E-SIGN Act or use the CFPB’s electronic delivery safe harbor.
Is this template also valid for the Equal Credit Opportunity Act (ECOA)?
The credit version includes ECOA language, but always double-check Regulation B (12 CFR § 1002.9).
Using a properly drafted FCRA adverse action letter protects both your applicants and your company. I’ve made this template free because I’ve seen too many small businesses get hit with class actions over technical violations that could have been avoided with a solid letter.
Download your adverse action notice template now and sleep better tonight:
→ Click Here for Word Version
→ Click Here for PDF Version
Remember: This is not legal advice. Laws change, and your situation may have unique facts. Consult your employment or consumer-law attorney before using any template in real cases.
Sources: Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), CFPB Model Forms, FTC Staff Opinion Letters, IRS.gov (for unrelated EIN verification in background checks).