In which situation would a dealership NOT need to send an adverse action notice?

A dealership would not need to send an adverse action notice when a customer's credit application is accepted because this situation does not warrant the notification process associated with adverse actions. Adverse action notices are typically required when a consumer's application for credit is either denied or results in terms that are less favorable than what the consumer was seeking.

In the case of an accepted application, the dealership is moving forward with the credit request, which does not imply any negative outcome or unfavorable decision that would require informing the customer. An adverse action occurs when there is a negative impact on the customer's credit request, such as denial or unfavorable terms, so acceptance is a clear indicator that no adverse action has taken place.