What does the ECOA state regarding the content of an adverse action notice?

The ECOA, or Equal Credit Opportunity Act, establishes guidelines that lenders must follow when they issue adverse action notices to consumers. An adverse action notice is required when a lender denies credit, increases the costs of existing credit, or takes any other action that negatively affects a consumer's application for credit.

The correct choice reflects the fact that while the ECOA has specific requirements regarding what must be included in an adverse action notice, it does not mandate the inclusion of the appraiser's details. Instead, the notice must communicate the reasons for the adverse action clearly and provide information on how the consumer can obtain a copy of their credit report and the name of the credit reporting agency. This aligns with consumer protection principles, ensuring transparency in lending processes while maintaining privacy concerning appraisers' identities, which are not central to the borrowing decisions themselves.

Therefore, the understanding of requirements under the ECOA helps ensure that consumers receive pertinent information without unnecessary detail that does not impact their credit evaluation.