ECOA Adverse Action Notice: The 30, 60 and 90-Day Rules (Reg B)
Regulation B sets the deadline and contents of the notice a creditor sends when it approves, counteroffers or turns down an application. The test checks the day counts (30, 60, 90) and what the notice must say. Rules below are from 12 CFR 1002.9 and 1002.12, as at 11 Oct 2026.
What counts as adverse action
Adverse action is a refusal to grant credit in substantially the amount or on substantially the terms requested, unless the creditor makes a counteroffer that the applicant accepts or uses (12 CFR 1002.2(c)(1)(i)). It also covers closing an account or an unfavorable change to it that does not apply to a whole class of accounts. Action taken because an account is in default or delinquent is not adverse action (12 CFR 1002.2(c)(2)(ii)).
The deadlines
| Situation | Deadline | Source |
|---|---|---|
| Completed application: approval, counteroffer or adverse action | Notify within 30 days after receiving the completed application | 12 CFR 1002.9(a)(1)(i) |
| Incomplete application | Within 30 days after receiving it, send either an adverse action notice or a notice of incompleteness | 12 CFR 1002.9(c)(1) |
| Counteroffer not accepted or used | Adverse action notice within 90 days after notifying the applicant of the counteroffer | 12 CFR 1002.9(a)(1)(iv) |
| Adverse action on an existing account | Within 30 days after taking the action | 12 CFR 1002.9(a)(1)(iii) |
| Applicant asks for the reasons | Applicant asks within 60 days of the notice; creditor gives reasons within 30 days of the request | 12 CFR 1002.9(a)(2)(ii) |
| Keeping the file | 25 months after notifying the applicant of the action taken or of incompleteness | 12 CFR 1002.12(b)(1) |
What the adverse action notice must contain
- It must be in writing (12 CFR 1002.9(a)(2)). A creditor that received 150 or fewer applications in the preceding calendar year may notify orally (12 CFR 1002.9(d)).
- A statement of the action taken, and the creditor's name and address.
- The ECOA notice: federal law bars credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age (if the applicant can contract), receipt of public assistance income, or good-faith exercise of Consumer Credit Protection Act rights (12 CFR 1002.9(b)(1)).
- The name and address of the federal agency that oversees the creditor's compliance.
- Either the specific reasons for the action, or a statement of the right to get them: the applicant may ask within 60 days and the creditor answers within 30 days, with the name, address and phone number of the contact.
- Reasons must be specific. Saying the applicant did not meet the creditor's internal standards, or did not reach a qualifying score on its scoring system, is not enough (12 CFR 1002.9(b)(2)).
Incomplete applications and other cases
- A notice of incompleteness is written, lists the missing information, gives a reasonable deadline, and says the application will not be considered further without it (12 CFR 1002.9(c)(2)). If the applicant misses the deadline, the creditor owes nothing more.
- With more than one applicant, notice to one is enough, but it must go to the primary applicant where there is one (12 CFR 1002.9(f)).
- If a broker sends the application to several creditors and the applicant takes credit from one, the others need not send a notice. Otherwise each creditor that takes adverse action must notify, directly or through the broker (12 CFR 1002.9(g)).
- If a consumer report played a part in the decision, the Fair Credit Reporting Act adds its own disclosures (15 U.S.C. 1681m(a)); the sample forms in Regulation B Appendix C include that disclosure.
Worked timeline
Denial: the creditor receives a completed application on Monday, May 4, 2026. The notice is due by Wednesday, June 3, 2026 (30 days). It is sent Friday, May 29, with the right-to-reasons statement instead of the reasons.
The applicant asks for the reasons on Monday, July 20, 2026, inside the 60 days that run to Tuesday, July 28. The creditor must give them by Wednesday, August 19, 2026 (30 days after the request).
The creditor keeps the application file until at least Thursday, June 29, 2028 (25 months after the May 29 notice).
Counteroffer: if the May 29 letter had been a counteroffer and the applicant never accepted or used it, the adverse action notice would be due by Thursday, August 27, 2026 (90 days after May 29).
Exam trap
Exam takeaway
Practice notice timing with our fair lending practice questions and read the ECOA, fair lending and HMDA study note.
Frequently asked questions
How many days does a lender have to send an adverse action notice?
30 days after receiving a completed application, or 90 days after a counteroffer the applicant does not accept or use (12 CFR 1002.9(a)(1)).
What must an ECOA adverse action notice include?
The action taken, the creditor's name and address, the ECOA anti-discrimination notice, the federal agency that oversees the creditor, and either the specific reasons or the applicant's right to request them (12 CFR 1002.9(a)(2)).
How long does an applicant have to request the reasons for denial?
60 days from the notice. The creditor must then provide the reasons within 30 days of the request (12 CFR 1002.9(a)(2)(ii)).
How long must lenders keep ECOA application records?
25 months after notifying the applicant of the action taken (12 CFR 1002.12(b)(1)).
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