The League has updated the Adverse Action Notice form sold by the W.C.U.L. Services Corp. for use in credit-related transactions. A final proof version of the form may be viewed here:
Adverse Action Notice – WCUL #82029 (Rev. 2/16) (8½ x 14 inch, one sheet, single-sided).
A description of the changes to the form is provided later in this Compliance Courier, along with a link to a copy with the changes highlighted.
All state and federal credit unions should obtain and use the revised form at their earliest convenience. As previously announced, WCUL forms are sold only in fillable .pdf format. Preprinted paper forms are no longer offered. A license must be purchased and then you may print your own.
How to obtain the fillable .pdf forms
If the credit union is currently licensed for this form, the newly revised form will be emailed automatically. If you have not paid your 2016 forms invoice, please pay the invoice promptly and the licensed form will be emailed to you thereafter.
If you are not currently licensed for this form, then a new license may be purchased through The League’s website, www.theleague.coop, at Products & Solutions > Credit Union Forms. The purchased form may be downloaded immediately.
Description of changes
The form is updated to:
- Add a space for a description of the account, transaction, or credit requested,
- Change the fieldnames for four of the checkboxes provided for disclosure of the principal reasons for a credit denial,
- Provide a Washington, DC address for the NCUA, which is required when the notice is used by a federal credit union,
- Switch the locations of the counteroffer and notice of incomplete application sections, to make clearer that use of the counteroffer language requires disclosure of the principal reasons for adverse action,
- Clarify that this form is only for use by credit unions with assets of $10 billion or less (larger credit unions must use a form from another vendor),
- Provide more space, with four distinct fields, to insert the key factors that adversely affected a credit score used in making an adverse credit decision,
- Provide more space to indicate other action taken on a credit request, in case no preprinted choice applies,
- Provide more space to describe the additional information needed to make a decision on an incomplete application,
- Clarify that various sections of the form are only applicable if checked,
- Add a fillable field in the footer, which a credit union may use to record information as desired,
- Change from a two-copy form set to single copy (the credit union may specify the number of copies it desires when printing the form), and
- Remove the Credit Union and Member copy labels.
The hyperlink below goes to a proof copy of the revised Adverse Action form with the changes highlighted. Yellow highlighting on the linked final proofs shows the locations of new or revised text; pink shows new or revised fields. There may be some additional changes not highlighted, including but not limited to deleted text or fields, change in number of characters in fields, etc.
#82029 – Pink and Yellow highlighted version.
Additional guidance
This form is designed to help a credit union meet its adverse action notification requirements for credit transactions that imposed by Regulation B (Equal Credit Opportunity), at 12 CFR 1002.9, and the Fair Credit Reporting Act, at 15 USC § 1681m.
The League summarizes the Regulation B requirements in ii Release No. B041 and the FCRA requirements in ii Release No. 0126. Guidance on the FCRA adverse action notice requirements in the employment contest is provided in ii Release No. 0166. See Regulation B and the FCRA as needed for full details.
Other adverse action notices
The Fair Credit Reporting Act sometimes requires an adverse action notice when the Regulation B notice requirements do not apply. In those cases, WCUL #82029 is not the appropriate form to use.
- The League offers a different form, the Deposit Account Adverse Action Notice (WCUL #82058), but it is not being updated at this time. That form is intended to aid in compliance with the Fair Credit Reporting Act when a credit union takes adverse action on a non-credit account or service, based on information from a consumer reporting agency.
- The League also offers sample adverse action language in Exhibit D of ii Release No. 0166 Credit Union Applications for Employment, but it is not being updated at this time. That language is intended to aid in compliance with the Fair Credit Reporting Act when a credit union takes adverse action in the employment context (e.g., hiring, promotion, firing), based on information from a consumer reporting agency.
ii Release No. 0166 provides important guidance on the adverse action notice, consent, and other disclosures required by the FCRA when obtaining credit bureau reports in the employment context. For example, the credit union must give the employee/applicant a copy of the consumer report and a special Summary of Consumer Rights (obtained from the consumer reporting agency) before taking adverse action.
Use of WCUL fillable .pdf forms
Credit unions may use the fillable .pdfs on their desktops or have them mapped to their data processing systems. It is up to the credit union to forward their licensed .pdf files to the data processor, if they choose, for installation and mapping for use on the credit union’s system. Your data processor will not have the forms until you forward them! Credit unions may also share this Compliance Courier with their data processor if doing so will aid in mapping fields.
Laser forms should be printed and reviewed for proper display. Compare printouts of the installed forms to the final proofs available through the links above.
Please keep in mind that the license for WCUL forms permits use of the same .pdf files for manual completion on a desktop. This may be a valuable option during the time it may take for a data processor to map the fields when putting an updated form on the system.
Please address form order questions to Jeff Bonk at 800-242-0833, ext. 6044, and questions about completion of the form and compliance to John C. Engel at ext. 6007.
Important reminders
Please keep in mind that WCUL forms are designed for use in transactions subject to Wisconsin law and applicable federal law.
Please remember that the forms you use are important legal documents. Credit unions are responsible for reviewing forms to determine that they are appropriate for the transaction. Users should read and become familiar with the terms of each form they use and how they must be completed in compliance.