Adverse action
CIPP/US glossary · Last reviewed: · By Victor Humenhuk (CIPP/US certified)
Adverse action - Any business, credit or employment action with a negative impact on a consumer, such as denying or cancelling credit/insurance or denying employment or promotion.
In the CIPP/US body of knowledge, Adverse action comes up under Chapter 9: Financial Privacy.
Adverse action in context
- An ==adverse action== is any negative business, credit or employment decision. (Adverse Action Notices)
- Employers using consumer reports must give a ==clear written stand-alone notice==, get ==prior written authorization==, ==certify== compliance to the CRA (including no EEO violations), and before any adverse action provide the consumer a ==copy of the report and a summary of rights==. (Consumer Reports for Employment)
- Internal ==misconduct investigations== are not consumer reports if the employer follows the act's procedures, uses no credit information, and gives a summary if an adverse action results. (Misconduct Investigations and Investigative Consumer Reports)
Where Adverse action is covered in the CIPP/US study notes
Test yourself on Adverse action
Recognising a definition is not the same as applying it in an exam scenario. Work through the free CIPP/US practice questions, or read the full CIPP/US study guide - every study note is free.