Can AI draft an adverse action notice for a rejected applicant?
Yes, an AI assistant can format the notice, but you must supply the facts and make the decision. If you reject an applicant, raise the rent or deposit or ask for a co-signer because of a consumer report, the FTC says you must send an adverse action notice with the reporting agency's details and the applicant's rights. A draft from AI is only a starting point. Check every field against the report and the FTC checklist.
When you owe an adverse action notice
The FTC's guide for landlords says you must send the notice when you take an unfavorable step based partly or fully on a consumer report. Rejecting the applicant is the obvious case. Raising the rent, raising the deposit or requiring a co-signer counts too. The FTC says the notice is required even if the report played only a small role in the decision.
If you decline someone for a reason that has nothing to do with a report, such as a missing application page or income below your written rule, this notice is not triggered. Your records should still show the real reason. The longer treatment of the rule is in the adverse action notice guide.
What the notice has to contain
According to the FTC guide, the notice includes:
- The name, address and phone number of the consumer reporting agency that supplied the report.
- A statement that the agency did not make the decision and cannot explain the reasons for it.
- The applicant's right to dispute inaccurate or incomplete information and to get a free report from the agency if they ask within 60 days.
- If a credit score was used, the score, a description of it (source, date created and range for the model) and the key factors that lowered it, ranked by importance.
The FTC says notices may be written, electronic or oral, and recommends writing because it proves you complied. Keep a copy.
A prompt that keeps the AI in its lane
Do not paste the applicant's whole file. Give the assistant only the pieces it needs for a letter, and tell it what it must not do:
"Draft a plain adverse action letter to [applicant name] for the unit at [address]. I decided to [decline the application / require a co-signer / raise the deposit] because of information in a consumer report. The agency is [name, address, phone] (I will check these). Include that the agency did not make the decision, the right to dispute, and the right to a free copy within 60 days. Leave a clearly marked blank for the credit score details. Do not give any other reason and do not mention protected traits."
Then compare the draft with the FTC list above. Fill the agency details and score details from the screening report itself, not from the assistant's memory. An assistant can invent an address that looks real.
What to check before you send it
| Check | Why |
|---|---|
| Agency name, address and phone match the report | These are required, and an invented value would be wrong |
| Dispute and 60-day free report language is present | Required by the FTC guidance |
| Score details copied from the report, if a score was used | The notice must include them in that case |
| No reason beyond the report and your written rule | Extra comments create fair housing risk |
| Same wording you would send any applicant in the same position | Consistency is your protection |
Example a made-up applicant is declined because the report shows an account in collections above the limit in your written rule. The letter names the agency from the report, says the agency did not decide, explains the dispute right and the 60 days, and lists no other reasons. You attach nothing else.
Who makes the decision
You do. Use one written rule for every applicant, apply it the same way, and let the report inform you, not decide for you. An assistant can compare an application to your rule and tell you which line it meets or misses. It should not score applicants or recommend a yes or no, and you should not ask it to. See AI tenant screening questions that stay fair.
How DoorKeeping handles it
With DoorKeeping connected, your assistant can read an application and what was found in its documents, and it is built to describe facts and never recommend approving or denying. You approve or deny on doorkeeping.com. Rent stays in your own bank account, and anything involving money or a legal step waits for your approval. DoorKeeping gives no legal advice, so the wording of any notice stays your call.
Sources
- FTC: Using Consumer Reports, What Landlords Need to Know, read Oct 31, 2026
- DoorKeeping: Connect Claude or ChatGPT (steps and tools list), read Oct 31, 2026
Questions
- Do I need an adverse action notice if I only used the application?
- Not under the consumer report rule. The FTC guidance applies when a consumer report played any part in the decision.
- Can the AI decide who to reject?
- It should not. Use one written rule, apply it yourself and let the assistant only line up facts against that rule.
- Is an email enough?
- The FTC says notices can be written, electronic or oral, but written gives you proof. Keep a copy either way.
- Should I paste a credit report into ChatGPT?
- Avoid it. Copy only the agency name, address and phone and the score details you must list, and keep the rest of the report out of the chat.