True or False: A credit union must provide an adverse action notice if it refuses to open an account based on a consumer report.

A credit union is required to provide an adverse action notice when it denies a request to open an account based on information contained in a consumer report, as stipulated by the Fair Credit Reporting Act (FCRA). The adverse action notice serves as a critical part of consumer rights, ensuring that individuals are informed when a decision that negatively affects them is taken based on their credit history or other consumer report data.

This notice must include the reason for the adverse action, the consumer's right to dispute the accuracy of the report, and information on how to obtain a free copy of the report from the consumer reporting agency that provided the information. This promotes transparency and allows consumers to understand the financial decisions being made about them.

In contrast, the other options either imply that there are exceptions that do not exist, or suggest that state regulations alter the fundamental requirement set by the FCRA, which in this case, they do not. Therefore, the requirement stands firmly that an adverse action notice must be provided if a credit union refuses to open an account based on a consumer report.