Dallas, TX asked in Consumer Law and Banking for Texas

Q: Which party should I send my adverse action too? The bank who denied my credit or the consumer reporting agency?

I applied for credit for dental work, only to find out that my promissory note had been shopped around to different bank who denied credit based on an inaccurate consumer report. However, I know the application is being securitized without any consideration to myself.

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1 Lawyer Answer
James L. Arrasmith
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  • Consumer Law Lawyer
  • Sacramento, CA

A: In Texas, if you've been denied credit based on information from a consumer report, you should address your adverse action notice to both the bank that denied your credit and the consumer reporting agency. The Fair Credit Reporting Act (FCRA) entitles you to a notice from the lender explaining the reasons for your credit denial, which includes the name, address, and phone number of the consumer reporting agency that provided the information.

You also have the right to obtain a free copy of your credit report from the reporting agency within 60 days of receiving the denial notice. It's important to review the information in your credit report to ensure its accuracy. If there are inaccuracies, you can file a dispute with the consumer reporting agency. They are required to investigate and correct any errors.

Addressing the issue with both the bank and the reporting agency ensures that you are taking comprehensive steps to address the denial of credit and any issues with your credit report. It's also advisable to document all communications and actions taken in this process.

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