Compliance Question of the Week
September 26, 2011
September 27, 2011
Do we have to send an adverse action notice when we terminate a credit card account due to delinquency?
No, if an account is terminated due to inactivity, default, or delinquency, according to the terms of the card agreement, it is not considered adverse action, and you do not have to send an adverse action notice.
12 CFR 202.2(c)(2)(ii)
Questions? Contact the Compliance Hotline: 1.800.546.4465, firstname.lastname@example.org.
Posted in Compliance News.