Discourage you from applying or reject your application because of your race, color, religion, national origin, sex, marital status, age, or because you receive public assistance. … A creditor may use only the terms: married, unmarried, or separated.
When can a creditor ask for marital status?
When a request for credit is joint (made by two or more individuals who will be primarily liable)
, the creditor may ask the applicant's marital status, regardless of whether the credit is to be secured or unsecured, but may use only the terms “married,” “unmarried,” and “separated.” This requirement applies to oral as …
Which question is allowable on a credit application?
Creditors are only
permitted to ask if you are married, unmarried or separated
. Inquiring about marital status if you are applying for credit independently. However, the following community property states allow it: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
What is the correct aggregate category when asking for the ethnicity of an applicant?
When you collect an applicant's ethnicity, race, and sex on the basis of visual observation or surname, you must select from the following aggregate categories: Ethnicity (
Hispanic or Latino
; not Hispanic or Latino); race (American Indian or Alaska Native; Asian; Black or African American; Native Hawaiian or Other …
Is it legal to ask race on a credit card application?
A law called
the Equal Credit Opportunity Act (ECOA)
enacted in 1974 makes it illegal for lenders to discriminate based on race, national origin, gender, age, marital status, or because one receives public assistance. … So ECOA says lenders can't use race, ethnicity, gender, and age to make loan decisions.
What are 3 consequences of having low credit when trying to buy a car or home?
Poor credit can make it harder to get car and home loans, and
to qualify for credit card accounts
—you may need to start off with a secured credit card to build your credit. Even if you are offered a loan, chances are it will be at a higher interest rate.
Can race be on job applications?
Federal law prohibits discriminating against job seekers because of race or gender
, so being asked to volunteer such information in a job application may seem odd. … On the other hand, many recruiters still can detect race and gender from other information you may voluntarily provide.
What is the 30 day ECOA rule?
The first part of the 30-day rule requires
creditors to provide notification of their credit decision within “30 days after receiving a completed application concerning the creditor's approval of, or counteroffer to, or adverse action on the application
.” While this is a mouthful to say, it really isn't that difficult.
What are the only three reasons a creditor may deny credit?
National Origin, or Sex — 12 CFR § 1002.6(b)(9)
Except as otherwise permitted or required by law, a
creditor shall not consider race, color, religion, national origin, or sex
(or an applicant's or other person's decision not to provide the information) in any aspect of a credit transaction.
Can you ask marital status on a loan application?
Lenders can't deny you because you aren't married. Mortgage lenders can, however,
ask and verify your status
. While federal law prohibits mortgage lenders from discriminating again you based on your marital status, you must disclose whether you are married and provide information about dependents and divorce.
What do banks consider when determining if someone qualifies for credit?
Capacity. Lenders need to determine whether you can comfortably afford your payments.
Your income and employment history
are good indicators of your ability to repay outstanding debt. Income amount, stability, and type of income may all be considered.
What happens if you are denied credit according to ECOA?
When you're denied credit,
the required notification from the creditor indicates contact information for a particular government agency
, which will depend on the type of loan or credit. Submit a complaint to the Consumer Financial Protection Bureau. 5 It will work with the creditor to get an answer for the consumer.
What are acceptable factors for rejecting a loan?
The most common reasons for rejection include a
low credit score or bad credit history
, a high debt-to-income ratio, unstable employment history, too low of income for the desired loan amount, or missing important information or paperwork within your application.
What is Reg Z in lending?
Regulation Z
prohibits certain practices relating to payments made to compensate mortgage brokers and other loan originators
. The goal of the amendments is to protect consumers in the mortgage market from unfair practices involving compensation paid to loan originators.
What is a disaggregated subcategory of Hispanic or Latino?
Disaggregated Subcategories:
Mexican, Puerto Rican, Cuban
, etc.
What types of loans are covered under Reg B?
- Consumer credit.
- Business credit.
- Mortgage loans.
- Refinancing.
- Open-end credit.
- Credit applications.
- Standards of creditworthiness.
- Adverse action.
