Adverse Action Letter Sample

An adverse action letter is required if you're rejecting tenant applicants due to their credit reports. Get your free template here.

What You Should Know Before Using Our Adverse Action Letter to Tenants

Consumer reports (credit reports, rental histories, reference checks) from credit reporting agencies are popular with landlords for a good reason. For a small fee, you get to access a tenant applicant's credit, rental and public records.

To run background and credit checks on applicants, we recommend using reputable tenant screening sites such as E-Renter (instead of generic credit bureaus). We find that their screening reports are more helpful as they contain renter-specific details such as rental histories and eviction records.

However it's important to follow the rules of the Fair Credit Reporting Act when you do so. If you take adverse action against a tenant applicant due to his or her consumer report, you are required to inform the applicant this adverse action. Our adverse action notice form below allows you to do so with ease and in writing.

So what does adverse action mean? Besides rejecting someone as your tenant, it also includes other unfavorable actions against the applicant such as demanding a larger security deposit, asking for more rent or requiring a co-signer for the lease.

For consumer reporting agency, fill in details of the company where you got the reports from (and not the credit bureau). Example: You bought a tenant credit report from TVS. TVS relies on Experian credit bureau to prepare its reports. You should fill in TVS particulars for credit reporting agency name, address and phone number.

Adverse Action Notice

Date: _______________

Applicant Name: _________________________

Applicant Address:

Owner/Agent Name: _________________________

Owner/Agent Address:


[     ] Your application is denied

[     ] Your application is approved with the following condition(s):
          [     ] More deposit is required
          [     ] Higher rent is required
          [     ] A co-signer on the lease is required

The adverse action taken was based in whole or in part on the information obtained in a consumer report from the following consumer reporting agency:

Consumer Reporting Agency Name: _________________________

Consumer Reporting Agency Address:

Consumer Reporting Agency Toll-Free Phone Number: ____________________

The abovementioned consumer reporting agency did not make the decision to take adverse action and is unable to provide you the specifc reason(s) for the adverse action.

Pursuant to the Fair Credit Reporting Act, you have the right to a free copy of your consumer report from the abovementioned consumer reporting agency within 60 days of receiving this notice. You also have the right to dispute any inaccurate or incomplete information in the consumer report furnished by the consumer reporting agency.

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