# Explain the reasons for a credit denial in an adverse action notice

Clear, specific, compliant principal-reason statements for a declined or counter-offered credit application.

- Topic: Legal & Compliance
- Framework: Few-Shot
- Level: Advanced
- Tags: Legal, Write, Explain & Teach, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/explain-the-reasons-for-a-credit-denial-in-an-adverse-action-notice

## Prompt

```text
Help me write the statement of reasons for an adverse action notice on a credit application.

**Product:** [consumer or business credit - e.g. "credit card", "auto loan", "small business line"]
**Action taken:** [declined / approved on different terms (counteroffer) / account closed or limit reduced]
**Decision factors from our underwriting or model:** [LIST the actual factors in order of importance - e.g. "debt-to-income 52%, policy max 43%"]
**Was a credit report or score used?** [yes/no; bureau name; score and key factors if provided]
**Jurisdiction:** [e.g. "US" plus state]

Do this:
1. Turn the factors into up to four principal reasons written in specific, plain language (for US consumer credit, the reasons must reflect the actual factors - avoid vague phrases like "internal standards" or "insufficient score").
2. Check each reason against prohibited bases and flag any factor that could be or act as a proxy for a protected characteristic (e.g. age, marital status, receipt of public assistance, ZIP code).
3. List the other elements the notice typically needs for this situation - e.g. the creditor's details, the ECOA anti-discrimination notice and regulator, and, if a consumer report was used, the credit reporting agency details, the score disclosure, and the applicant's right to a free report and to dispute - as a checklist marked [CONFIRM with our template].
4. Flag if the counteroffer scenario changes what must be sent.

Do not invent reasons that are not in my list. This is general information, not legal advice; have compliance or counsel confirm the final notice against current regulations and our approved templates.
```

## What to fill in

- yes/no; bureau name; score and key factors if provided
- e.g. "US" plus state
- CONFIRM with our template

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