adverse action

**Adverse Action**

In legal and employment contexts, “adverse action” refers to any action taken by an employer, lender, or other entity that negatively affects an individual’s employment, credit, or application status. This can include actions such as termination, demotion, denial of credit, or refusal to hire. Understanding adverse action is essential for compliance with laws like the Fair Credit Reporting Act (FCRA) and the Equal Employment Opportunity Commission (EEOC) regulations, which require notification and justification when such actions are taken. This tag covers topics related to the legal definitions, examples, implications, and procedures involved in adverse actions.