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When a credit application is DENIED
, you must provide a statement of action and Adverse Action Reason(s) to the Account Holder in writing via email or mail within 30 days. This is a requirement to promote credit availability to all creditworthy applicants and ensure the credit decision is based on creditworthiness.
Each credit policy rule within your Card Product is assigned Adverse Action Reasons. For example, suppose your credit policy has a rule that the annual business revenue of an applicant must be greater than a specified amount. In that case, the application may be DENIED
with the Reason of INSUFFICIENT_INCOME
.
If you use Collaborative Application Decisioning, you must provide the applicable Adverse Action Reasons in a DENIED
response, based on your underwriting decision and credit policy's rules.
For a complete Adverse Action Reason Codes list, see the API Reference.
For Credit Card Products, regulation requires you to provide Adverse Action (AA) reason(s) to the Account Holder within a specified timeframe when an extension of credit is DENIED
. Adverse Action reasons are assigned and associated with each rule within your Product's credit policy and are populated based on the rules which failed in the credit decision. For example, if your credit policy has a rule that the Annual Business Revenue provided in the application must be greater than a specified amount, the application may be DENIED
with the AA reason of "Income insufficient for the amount of credit requested."
Opening an Application on a Credit Card Product in the Test environment allows you to test various Adverse Action reasons on a DENIED
response by providing specified values on the legalBusinessName
and/or annualRevenue
inputs when creating the Business Account Holder. The annualRevenue
and legalBusinessNamevalues
will be used when you create an Application for the Card Product for the Business Account Holder.
In the Live environment, a DENIED
Application may have 1 or many associated AA reasons which must be provided to the customer.
Field | Value | Adverse Action Response |
---|---|---|
annualRevenue | $1.00 | INSUFFICIENT_INCOME Income insufficient for the amount of credit requested |
annualRevenue | $2.00 | DELINQUENT_CREDIT_OBLIGATIONS Delinquent past or present credit obligations |
annualRevenue | $5.00 | INSUFFICIENT_INCOME DELINQUENT_CREDIT_OBLIGATIONS |
legalBusinessName | DECLINE | UNABLE_TO_VERIFY_IDENTITY Unable to verify identity |