What is a "notice of adverse action"?

An "adverse action" letter is required anytime you are turned down for credit. All too often folks do not get one. You need to have your lease looked at by an experienced lemon law and auto fraud attorney to see if you still have a right to the lease itself, assuming you still want one. If dealer is unable to place your contract it may wish to cancel the deal. There are a lot of arguments that they cannot do this and even if they do, they do not always play fair when they do it. So, as noted, you need to consult with an attorney who knows this stuff to protect yourself. Most folks who do this, like my firm, do not charge for the consultation.

As Mr. Kaufman wrote, these are sent when a consumer's credit application is turned down. That can be either that the consumer applied for credit and was declined entirely or that the application for certain terms was not approved as specified. Often, an alternative credit term was made. For example, perhaps the consumer applied for a sweet 5.0% loan with nothing down, but the financial institution would not approve that and the loan proposed was 9.9% APR with $500 down payment. The reason you received several of these notices within a few days by mail is that the car dealership is trying to have your contract assigned to a financial institution, so they sent your application and the contract to several, and these did not accept the proposal, as presented. That does not mean that all of them declined your application. Also, one of them might suggest a counter offer that you may consider to be viable. Be very careful, as the terms being less favorable means that you are likely to pay more in total payments and finance charges. This can affect your long term budgeting and make saving for future needs more challenging. Again, as Mr. Kaufman suggests, you should consult with a consumer attorney, one with experience in car dealership transactions. Below is a link to such lawyers who are members of the National Association of Consumer Advocates. Robert Stempler (please see DISCLAIMER below) www.StopCollectionLawsuits.com www.facebook.com/SoCalConsumerLawyer Twitter: @RStempler

Your situation is one where you should only go with a lawyer who knows this area of the law very well. Mr. Stempler and Mr. Kaufman are two of the best and their answers to your question confirms the substantial depth of their knowledge. Good luck.