| The
Equal Credit Opportunity Act makes it unlawful for any
creditor to discriminate against any credit applicant
with respect to any aspect of a credit transaction on
the basis of race, color, religion, national origin
or ancestry, sex, marital status, or age (provided the
applicant has the capacity to contract). The law prohibits
discrimination against applicants who receive income
from a public assistance program or against an applicant
who has exercised, in good faith, any right under the
Consumer Credit Protection Act. In all cases, credit
guidelines must be applied in a uniform manner.
A lender/creditor who denies an application for credit
must provide the applicant with a statement of reasons
or a written notification of the applicant’s right
to obtain a statement of reasons. The statement and
notice of adverse action must generally be provided
within 30 days after receiving the completed loan application.
(In certain credit transactions, the notice period may
be longer.) The notification and statement from the
lender/creditor may be verbal if in the preceding calendar
year the lender/creditor acted on less than l50 loan
applications.
Adverse action includes a denial, revocation, or change
in the terms of an existing credit arrangement and does
not include a refusal to extend credit under an existing
credit arrangement where the applicant is delinquent
or otherwise in default. Nor does it include additional
credit which would cause an extension of credit to exceed
an established limit.
In addition to the foregoing federal law, state law
regulates the issuance of consumer credit reports, access
by the consumer to such reports, and the obligations
of credit reporting agencies. Also, users of consumer
credit reports are subject to the requirements of state
law and must provide notice to the consumer when credit
is denied.
Title 15 U. S. Code 1691 et seq.
Regulation B (12 CFR Part 202 et seq.)
California Civil Code Section 1785.1 et seq.
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