What must be clear and conspicuous in the notice given to members about negative reporting?

The correct answer emphasizes the importance of the notification itself being clear and conspicuous. In the context of negative reporting, it is crucial that members receive a straightforward and easily understandable notice about how their information may be reported to credit bureaus. This clarity ensures that members are fully aware of the implications of potential negative reporting on their credit history and the importance of maintaining their repayment obligations.

In consumer lending regulations, specific provisions require that notices related to adverse actions or negative reporting be presented in a way that is not misleading. It visually stands out and provides pertinent information without ambiguity, enabling members to easily comprehend their rights and any actions they need to take to protect their credit standing.

The other choices, while important in different contexts, do not meet the specific requirement of being clear and conspicuous regarding the notice about negative reporting. Terms of the loan and credit union policies may be relevant in informing members about their financial agreements, but these do not directly address the necessity of transparency and straightforward communication in the notice itself. Personal information of the member, while typically protected and relevant in other scenarios, does not pertain to the clarity needed in the context of negative reporting notices.