What warning must be included if an adverse action is based on information from a consumer report?

When an adverse action is taken based on information from a consumer report, the Fair Credit Reporting Act (FCRA) requires that a specific warning be included in the notification to the consumer. This warning must inform the consumer about the credit score that was used in making the decision, as well as any key factors that negatively affected that score.

Including the credit score is essential because it provides transparency to the consumer about how their creditworthiness was assessed. This information can help the consumer understand the reason behind the adverse action and allows them to take informed steps to improve their credit situation if desired.

While eligibility criteria, dispute processes, and terms and conditions are also important components of credit reporting and consumer rights, they do not hold the same specific mandated requirement in the context of notifying a consumer about an adverse action based on a consumer report. Therefore, the inclusion of the credit score is vital in fulfilling the obligation under the FCRA for transparency and consumer awareness.