> ## Documentation Index > Fetch the complete documentation index at: https://docs.synctera.com/llms.txt > Use this file to discover all available pages before exploring further. # Adverse Actions > Adverse action notices record and communicate the reasons a credit decision adversely affected a customer, as required by the ECOA and FCRA. ## Overview Adverse action notifications are a cornerstone of regulatory compliance in financial services. Mandated by the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA), they ensure applicants are informed promptly and transparently when a decision adversely affecting them is made. The Adverse Actions API streamlines recording these notices and associating them with the application or account they concern. **An adverse action** captures the reasons a customer was denied credit — or offered less favorable terms than requested — along with the purpose of the decision and the resource it relates to. Key characteristics: * **Reason-bearing** — a notice carries up to four principal `reasons` (a fifth may be required if one reason is inquiry-related). * **Purpose-scoped** — the `purpose` records the point in the account lifecycle the decision was made (e.g. `ACCOUNT_OPENING`, `ACCOUNT_CLOSURE`). * **Associated** — every notice is tied to an application or account via `related_resource_id` and `related_resource_type`. * **Timely** — the notice of adverse action (NOAA) must generally be delivered within 30 days of the credit decision. A fintech must give customers specific reasons when credit is denied or terms are less favorable than requested — typically up to four principal reasons, plus a fifth if one is inquiry-related. Adverse actions apply across the credit lifecycle: account opening denial, denied line-increase request, penalty-based APR increase, account closure, and more. ## Prerequisites This guide assumes you are familiar with: * [Need to Know — Environments](/v2/reference/need-to-know#environments) * [Need to Know — Authentication](/v2/reference/need-to-know#authentication) * Credit [applications](/v2/reference/patchapplication) and accounts ## The adverse action object | Field | Description | | ------------------------------------- | -------------------------------------------------------------------------------------------------------- | | `id` | Unique identifier (read-only, assigned on creation). | | `purpose` | The lifecycle event the decision concerns (e.g. `ACCOUNT_OPENING`, `ACCOUNT_CLOSURE`). | | `reasons` | The principal reasons for the adverse action (e.g. `TOO_MANY_INQUIRIES`, `INSUFFICIENT_CREDIT_HISTORY`). | | `related_resource_id` | The `id` of the associated customer or account. | | `related_resource_type` | The type of associated resource: `CUSTOMER` or `ACCOUNT`. | | `notification_time` | When the customer was notified of the decision. | | `creation_time` / `last_updated_time` | Timestamps (read-only). | ```json theme={"system"} { "id": "2fb2858b-f859-4dc8-9ad2-2a4e596fed89", "purpose": "ACCOUNT_OPENING", "reasons": ["TOO_MANY_INQUIRIES", "INSUFFICIENT_CREDIT_HISTORY"], "related_resource_id": "9337a443-fa03-471c-ab05-b138c41dbd17", "related_resource_type": "CUSTOMER", "notification_time": "2020-05-19T21:14:27.434964Z", "creation_time": "2023-09-19T15:48:24.10184Z", "last_updated_time": "2023-09-19T15:48:24.10184Z" } ``` See the [API reference](/v2/reference/createadverseaction) for the full schema. ## Recording adverse actions ### Example: a denied Line of Credit application When an application to open a Line of Credit account is denied, record the notice with [POST /v2/adverse\_actions](/v2/reference/createadverseaction), scoped to the customer: ```shell theme={"system"} curl \ -X POST \ -H "Authorization: Bearer $apikey" \ -H 'Content-Type: application/json' \ https://api.synctera.com/v2/adverse_actions \ --data-binary ' { "notification_time": "2020-05-19T21:14:27.434964Z", "purpose": "ACCOUNT_OPENING", "reasons": ["TOO_MANY_INQUIRIES", "INSUFFICIENT_CREDIT_HISTORY"], "related_resource_id": "9337a443-fa03-471c-ab05-b138c41dbd17", "related_resource_type": "CUSTOMER" }' ``` The response includes the system-generated `id`: ```json theme={"system"} { "id": "2fb2858b-f859-4dc8-9ad2-2a4e596fed89", "purpose": "ACCOUNT_OPENING", "reasons": ["TOO_MANY_INQUIRIES", "INSUFFICIENT_CREDIT_HISTORY"], "related_resource_id": "9337a443-fa03-471c-ab05-b138c41dbd17", "related_resource_type": "CUSTOMER", "notification_time": "2020-05-19T21:14:27.434964Z", "creation_time": "2023-09-19T15:48:24.10184Z", "last_updated_time": "2023-09-19T15:48:24.10184Z" } ``` Associate the adverse action with the applicant on the Line of Credit application using [PATCH /v2/applications/\{APPLICATION\_ID}](/v2/reference/patchapplication), and move the application to `CREDIT_DENIED`: ```shell theme={"system"} curl \ -X PATCH \ -H "Authorization: Bearer $apikey" \ -H 'Content-Type: application/json' \ https://api.synctera.com/v2/applications/{APPLICATION_ID} \ --data-binary ' { "applicants": [ { "adverse_action_id": "2fb2858b-f859-4dc8-9ad2-2a4e596fed89", "customer_id": "4a666a01-d23a-47b1-8c20-2eb5a923da35", "is_primary": true } ], "status": "CREDIT_DENIED" }' ``` ```json theme={"system"} { "id": "ebda67f0-e0a7-41e2-98ed-0617a1e815a6", "account_type": "LINE_OF_CREDIT", "type": "CREDIT", "purpose": "ACCOUNT_OPENING", "status": "CREDIT_DENIED", "applicants": [ { "adverse_action_id": "2fb2858b-f859-4dc8-9ad2-2a4e596fed89", "customer_id": "4a666a01-d23a-47b1-8c20-2eb5a923da35", "is_primary": true } ], "creation_time": "2022-10-26T19:14:45.861687Z", "last_updated_time": "2023-09-20T00:31:10.255042Z" } ``` ### Example: an account closed for delinquency When a charge-secured account is closed due to delinquency, record the notice scoped to the account with `related_resource_type` set to `ACCOUNT`: ```shell theme={"system"} curl \ -X POST \ -H "Authorization: Bearer $apikey" \ -H 'Content-Type: application/json' \ https://api.synctera.com/v2/adverse_actions \ --data-binary ' { "notification_time": "2020-05-19T21:14:27.434964Z", "purpose": "ACCOUNT_CLOSURE", "reasons": ["FRAUDULENT_ACTIVITIES"], "related_resource_id": "9337a443-fa03-471c-ab05-c538c41dbd17", "related_resource_type": "ACCOUNT" }' ``` ```json theme={"system"} { "id": "2fb2858b-f859-4dc8-9ad2-3b4e596fed89", "purpose": "ACCOUNT_CLOSURE", "reasons": ["FRAUDULENT_ACTIVITIES"], "related_resource_id": "9337a443-fa03-471c-ab05-c538c41dbd17", "related_resource_type": "ACCOUNT", "notification_time": "2020-05-19T21:14:27.434964Z", "creation_time": "2023-09-19T15:48:24.10184Z", "last_updated_time": "2023-09-19T15:48:24.10184Z" } ``` ## Best practices The notice of adverse action must generally be delivered within **30 days** of the credit decision. Record the adverse action and notify the customer promptly to stay within the regulatory window. * **Limit to principal reasons** — provide up to four principal reasons, adding a fifth only when one reason is inquiry-related. * **Always associate the notice** — link every adverse action to its application (`ACCOUNT_OPENING`) or account (`ACCOUNT_CLOSURE`, APR increase, etc.). * **Set an accurate `notification_time`** — it anchors the compliance timeline; record when the customer was actually notified. * **Cover the full lifecycle** — record adverse actions for line-increase denials and penalty APR increases, not just openings and closures. ## Related guides The customer an adverse action is scoped to. Link adverse actions to the applications they concern. The credit accounts adverse actions apply to. ## API reference * [Create an adverse action](/v2/reference/createadverseaction) * [List adverse actions](/v2/reference/listadverseactions) * [Get an adverse action](/v2/reference/getadverseaction) * [Update an application](/v2/reference/patchapplication)