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.
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 ...
What are the factors that a creditor Cannot use to deny a person credit?
prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age , because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection ...
What are the 9 prohibited bases of Regulation B?
There are nine prohibited factors under the ECOA. Most people are familiar with seven of them: gender, race, color, religion, national origin, marital status and age .
What creditors can consider when evaluating applications?
When evaluating an application for credit, a creditor generally may consider any information obtained . However, a creditor may not consider in its evaluation of creditworthiness any information that it is barred by § 1002.5 from obtaining or from using for any purpose other than to conduct a self-test under § 1002.15.
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 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 a borrower if they are divorced?
Lenders have to be careful when talking to a potential borrower about their marital status. They can’t ask you whether you’re single, divorced or widowed. Instead, they can only ask if you’re married, unmarried or separated .
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.
What is a Notice of Incomplete Application?
Notice of Incompleteness (NOI) is a letter from the lender to the loan applicant to request the applicant to provide documentation or information that is needed by the lender to make a credit decision .
What are the seven protected classes under ECOA?
This Act (Title VII of the Consumer Credit Protection Act) prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance , or good faith exercise of any rights under the Consumer Credit Protection Act.
What types of transactions are covered under ECOA?
The ECOA covers various types of credit, including personal loans, credit cards, home loans, student loans, car loans, small business loans and loan modifications .
What are the prohibited basis?
Prohibited basis means race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); the fact that all or part of the applicant’s income derives from any public assistance program; or the fact that the applicant has in good faith ...
Which of the following is a prohibited basis?
The definition of prohibited basis varies based on the specific regulation, but the possible prohibited bases are: race or color, religion, national origin, gender or sex, marital status, age , receipt of income from public assistance, exercise of rights under the CCPA, handicap, or familial status.
What loans does Reg B apply to?
Regulation B covers the actions of a creditor before, during, and after a credit transaction. The CFPB lists credit transactions and aspects of credit transactions to include consumer credit, business credit, mortgage, and open-end credit .
