What is the timeframe in which an adverse action notice must be sent after a loan application is denied?

An adverse action notice must be sent within 30 days after a loan application is denied. This requirement is stipulated under the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA), both of which aim to ensure fair treatment of applicants. When an application is denied, giving the applicant this notice within the specified timeframe helps them understand the reason for denial and informs them of their rights. The 30-day period allows lenders adequate time to process the application and determine any adverse action taken based on the evaluation of the loan application. This notification period is crucial in promoting transparency and compliance with consumer protection regulations.