Adverse Action Letter Template: How to Use This Essential HR Document

April 9, 2024

So, you’ve received an adverse action letter from a company you applied to – now what? Don’t panic just yet. These letters are actually pretty common and serve an important purpose. If you’re not familiar with adverse action letters, they’re basically formal notices that let you know you were denied a job, loan, or other type of application. They usually include specific reasons why you were rejected and information about your rights to further review the decision.

If you’re feeling confused or frustrated after receiving an adverse action letter, just know that you’re not alone. Many people go through this experience at some point in their lives. It’s important to understand the contents of the letter and what your next steps should be. Luckily, there are plenty of templates online that can help guide you through the process of responding to an adverse action letter. These templates can make the task less daunting and ensure you’re taking the right actions moving forward.

Whether you’re applying for a job or a loan, receiving an adverse action letter can be disheartening. However, it’s crucial to stay informed about your rights and options in this situation. By using an adverse action letter template, you can effectively communicate with the company that denied your application and potentially have the decision reevaluated. Remember, everyone faces setbacks like this at some point – what matters most is how you handle it and move forward.

Adverse action letter template for employment

When an employer needs to inform a job applicant that they have been denied employment, it is crucial to do so in a professional and compassionate manner. An adverse action letter can help in this situation by providing a clear explanation for the decision and offering guidance on next steps. Here are seven examples of adverse action letter templates for employment:

Dear [Applicant],

We regret to inform you that after careful consideration, we have decided not to offer you the [position] at our company. This decision was based on [specific reason], and we appreciate the time and effort you put into the interview process.

Although we will not be moving forward with your application at this time, we encourage you to continue pursuing your career goals and wish you all the best in your future endeavors.

Dear [Applicant],

Thank you for your interest in the [position] at [company name]. After reviewing your qualifications and conducting interviews, we have decided to pursue other candidates for this role. We appreciate the opportunity to consider you for the position.

Please know that this decision was not made lightly, and we value the time and effort you put into the application process. We wish you success in your job search and hope our paths may cross again in the future.

Dear [Applicant],

It is with regret that we inform you that after careful consideration, we have decided to offer the [position] to another candidate. We want to thank you for your interest in our company and for taking the time to interview with us.

We recognize the effort you put into your application and interview, and we wish you success in your job search. We will keep your resume on file for future opportunities that may arise.

Dear [Applicant],

After thorough review and consideration of all applicants, we have selected a candidate whose qualifications more closely align with the requirements of the [position]. We regret to inform you that we will not be moving forward with your application at this time.

We appreciate your interest in [company name] and the time you invested in the interview process. We wish you the best of luck in your job search and future endeavors.

Dear [Applicant],

It is with regret that we inform you that we have decided not to offer you the [position] at this time. This decision was based on [specific reason], and we want to thank you for your interest in joining our team.

We understand that this news may be disappointing, but please know that we value the time and effort you put into the application process. We wish you success in your future job search and career pursuits.

Dear [Applicant],

Thank you for your application and interest in the [position] at [company name]. After careful review, we have determined that there is another candidate who is a better fit for the role.

We appreciate the time you spent interviewing with us and want to express our gratitude for your interest in our company. We wish you success in finding a position that aligns with your skills and career goals.

Dear [Applicant],

We regret to inform you that we have selected another candidate for the [position] at this time. We appreciate your interest in joining our team and want to thank you for the effort you put into your application and interviews.

While we will not be moving forward with your application, we wish you continued success in your job search and future endeavors. Your qualifications and experience are valuable, and we encourage you to explore other opportunities that may arise.

Adverse action letter template for rental application

After reviewing the rental application, if a landlord decides to take adverse action against an applicant, they are required to send an adverse action letter. This letter should clearly explain the reasons for the denial of the application and provide the applicant with information on how they can request a copy of their credit report used in the decision-making process.

Dear [Applicant’s Name],
Thank you for your interest in renting [Property Address]. Unfortunately, after careful review of your rental application, we have decided to move forward with a different applicant. The main reason for this decision is [brief explanation of reason for denial]. If you have any questions or would like to request a copy of your credit report, please contact us at [Landlord’s Contact Information].
Sincerely,
[Landlord’s Name]

Dear [Applicant’s Name],
We regret to inform you that your rental application for [Property Address] has been denied. Upon review, we found that [specific reason for denial, such as insufficient income or credit history]. If you would like to discuss this decision further or obtain a copy of your credit report, please do not hesitate to reach out to us at [Landlord’s Contact Information].
Warm regards,
[Landlord’s Name]

Dear [Applicant’s Name],
We appreciate your interest in renting [Property Address]. However, we have determined that we are unable to approve your application at this time due to [reason for denial, such as a previous eviction or criminal record]. Should you wish to request a copy of your credit report or discuss this decision further, please feel free to contact us at [Landlord’s Contact Information].
Best regards,
[Landlord’s Name]

Dear [Applicant’s Name],
Thank you for applying to rent [Property Address]. Unfortunately, we have decided to deny your application due to [specific reason, such as a low credit score or negative rental history]. If you have any questions about this decision or would like to obtain a copy of your credit report, please reach out to us at [Landlord’s Contact Information].
Kind regards,
[Landlord’s Name]

Dear [Applicant’s Name],
It is with regret that we inform you that your rental application for [Property Address] has been denied. The main reason for this decision is [reason for denial, such as incomplete application or failure to meet income requirements]. If you would like to discuss this further or request a copy of your credit report, please feel free to contact us at [Landlord’s Contact Information].
Sincerely,
[Landlord’s Name]

Adverse action letter template

Adverse Action Letter Template for Credit Denial

When a credit application has been denied, it is important for the creditor to send an adverse action letter to the applicant. This letter should include specific reasons for the denial and inform the applicant of their rights under the Fair Credit Reporting Act. Below are some examples of how to structure an adverse action letter template for credit denial:

Dear [Applicant],
We regret to inform you that your recent credit application has been denied. After careful review of your application and credit history, we have determined that we are unable to approve your request at this time. The main contributing factors to this decision include [specific reasons for denial].
We are required by law to inform you that you have the right to request a free copy of your credit report within 60 days. If you have any questions or would like to discuss this decision further, please do not hesitate to contact us at [contact information].
Sincerely,
[Your Name]
[Credit Institution]

Dear [Applicant],
We have carefully reviewed your credit application and regret to inform you that we are unable to approve your request at this time. The main reasons for this decision include [specific reasons for denial].
As required by law, you have the right to request a free copy of your credit report within 60 days. If you would like more information about this decision, please feel free to contact us at [contact information].
Best regards,
[Your Name]
[Credit Institution]

Dear [Applicant],
After reviewing your credit application, we have determined that we are unable to approve your request at this time. The primary reasons for this decision include [specific reasons for denial].
Under the Fair Credit Reporting Act, you are entitled to a free copy of your credit report within 60 days. If you have any questions or would like more information, please contact us at [contact information].
Sincerely,
[Your Name]
[Credit Institution]

Adverse action letter template for mortgage application

When a mortgage application is denied or an offer is made with less favorable terms, a lender is required to provide an adverse action letter to the applicant. This letter should clearly explain the reasons for the adverse action and provide specific details on how the applicant can request more information or take steps to improve their creditworthiness.

Example 1: The lender may cite specific reasons for the denial, such as insufficient income or a low credit score, and outline steps the applicant can take to address these issues.

Example 2: The letter may also include information on the applicant’s right to request a free copy of their credit report and how to do so.

Example 3: In cases where the denial is based on information in the credit report, the letter should include the name and contact information of the credit reporting agency used by the lender.

Example 4: It is important for the letter to be written in a clear and professional manner, avoiding any ambiguous language that could confuse the applicant.

Example 5: The letter should also provide a deadline for the applicant to respond or take action, if applicable.

Example 6: Additionally, the letter should include information on fair housing laws and the applicant’s rights under the Equal Credit Opportunity Act.

Example 7: Finally, the letter should end on a positive note, encouraging the applicant to reach out with any questions or concerns and expressing the lender’s continued commitment to helping them achieve their homeownership goals.

Adverse action letter template for job application

When it comes to job applications, receiving an adverse action letter can be disheartening. This letter is usually sent to inform a candidate that they have not been selected for a job they applied for. However, it is important to remember that receiving such a letter is not a reflection of your worth as a person. Below are some examples of how to craft a thoughtful adverse action letter template for job applications:

Dear [Applicant Name],

Thank you for taking the time to apply for the [Job Position] at our company. We appreciate your interest in joining our team. After careful consideration, we regret to inform you that we have selected another candidate for the position. Please know that this decision was not an easy one, as we received many qualified applicants for the role.

Hi [Applicant Name],

We wanted to reach out and thank you for submitting your application for the [Job Position] with our organization. It was a pleasure getting to know you through the application process. Although we were impressed with your qualifications and experience, we have decided to move forward with another candidate for the role.

Dear [Applicant Name],

Thank you for your interest in the [Job Position] at [Company Name]. We received a large number of applications for the role and after careful review, we have chosen to proceed with another candidate. We appreciate the time and effort you put into your application and wish you all the best in your future endeavors.

Hello [Applicant Name],

We want to extend our gratitude for applying for the [Job Position] at [Company Name]. Your application was carefully reviewed, and while we were impressed with your qualifications, we have selected a candidate whose skills closely align with the requirements of the position. We wish you continued success in your job search.

Dear [Applicant Name],

Thank you for your interest in the [Job Position] at [Company Name]. We appreciate the time and effort you put into your application. After thorough consideration, we have decided to move forward with another candidate for the role. We wish you the best in your job search and future endeavors.

Adverse action letter template for loan denial

When a loan application is denied, it is essential to send an adverse action letter to the applicant. This letter informs them of the decision and provides reasons for the denial. Here are some key elements to include in the adverse action letter template for loan denial:

The first paragraph of the letter should clearly state that the loan application has been denied. It is important to be direct but also polite in delivering this news. You can start by thanking the applicant for their interest in the loan and then explain the reason for the denial.

Next, provide specific reasons for the denial. This could be due to the applicant’s credit history, income, employment status, or any other relevant factors. Be as detailed as possible in explaining why the application did not meet the eligibility criteria for the loan.

Include information on any recourse options available to the applicant. This could include steps they can take to improve their credit score, address any discrepancies in their application, or explore alternative loan options. It is important to offer guidance and support to help the applicant in moving forward.

Express gratitude for the applicant’s time and consideration. Even though the news may be disappointing, it is important to maintain a respectful and courteous tone throughout the letter. Thank the applicant for their interest and encourage them to reach out if they have any questions or need further assistance.

Provide contact information for the loan officer or customer service representative. Make sure the applicant knows who they can contact if they have any inquiries or need clarification on the denial. Being transparent and accessible can help the applicant feel supported and valued, despite the outcome of their application.

Offer additional resources or counseling services if available. If your organization offers financial literacy programs or credit counseling services, consider including information on how the applicant can access these resources. Providing support beyond the loan application process can demonstrate your commitment to helping applicants improve their financial well-being.

End the letter on a positive note, reassuring the applicant that they are welcome to reapply in the future. Encourage them to take proactive steps to address the reasons for the denial and improve their chances of approval in the future. Express empathy and understanding while also conveying optimism for their financial journey.

Adverse action letter template for scholarship application

Receiving an adverse action letter for a scholarship application can be disheartening, but it’s important to remember that it’s not the end of the road. This letter is typically sent when you have not been selected for a scholarship, and it may contain valuable feedback that can help you improve your future applications.

Dear [Applicant],

We regret to inform you that you have not been selected for the [Name of Scholarship] scholarship. While your application was impressive, unfortunately, we had a limited number of scholarships available and tough decisions had to be made.

We want to commend you for your dedication to your studies and extracurricular activities. Your passion for [specific interest or field] was evident in your application, and we encourage you to continue pursuing your goals and aspirations.

Although you were not chosen for this scholarship, we encourage you to apply again in the future. Your determination and hard work are admirable, and we believe that you have a bright future ahead of you.