Consumer Lending Regs/ Equal Credit Opportunity Act Flashcards
What is the regulation for equal Credit opportunity act?
Regulation B
When was equal credit opportunity act enacted?
1974
To promote the availability of credit to all credit worthy applicants without regard to race, color, religion, national origin, sex, marital status or age.
This is the ______ of the equal credit opportunity act
Purpose
Who has rule making authority for the equal credit opportunity act?
CFPB
Can not discriminate against an applicant on a prohibited basis regarding any aspect of a credit transaction
Cannot discourage someone from applying for credit on a prohibited basis
Required disclosures must be clear and conspicuous and in a form the applicant may retain
These are the _________ of the equal credit opportunity act
General rules
Punitive damages called at 10k plus actual damages in individual actions
Lesser of 500K or 1% of the credit unions net worth in class action
Additional damages/penalties may be imposed
Costs if the action and reasonable attorneys fees can be awarded
These are example of what?
Possible liability for violations of the equal credit opportunity act
What are examples of prohibited bases for the equal credit opportunity act?
Race
Color
Religion
National origin
Sex
Marital status
Age
Income derived from public assistance
Applicant has in good faith exercised any right under the consumer protection act
What are the three types of discrimination?
Overt
Disparate treatment
Disparate impact
Match the definition to the correct type of discrimination: blatant discrimination on a prohibited basis
Overt
Disparate treatment
Disparate impact
Overt
Match the definition to the correct type of discrimination:
Applicants are treated differently based on a prohibited factor(no credible, no discriminatory explanation)
Overt
Disparate treatment
Disparate impact
Disparate treatment
Match the definition to the correct type of discrimination:
Practice is applied uniformly but has a discriminatory effect tied to a prohibited factor, and is not justified by business need
Overt
Disparate treatment
Disparate impact
Disparate impact
Advertising can not use what?
Words, symbols models or other forms of communication that express, imply, or suggest a discriminatory preference or that would discourage a reasonable person from applying
True or false you can ask applicant to designate a title on the application (mr. Ms. Mrs.) as long as it is optional.
True
Applicant resides in a community property state
Property located in a commercial property state is a basis for repayment of the credit
If applications is for joint credit
These are instances that you can ask about marital status true or false
True
True or false you can not ask permanent residence and immigration status?
False you may ask about that
True or false you may consider and deny credit based on the fact that the applicant is not a U.S. citizen
True as long as you’re denying all non U.S. citizens
True or false you can deny minors credit based on inability to enter binding contracts
True
True or false a credit program that offers more favorable credit terms to applicants age 62 or older is permissible
True
True or false you may consider the adequacy of security when the term of the credit extension exceeds applicants life expectancy
True
What is a self test?
A program, practice or study that is used specifically to determine the extent or effectiveness of a creditors compliance with ecoa
How long must self test information be retained for?
25 months
Under Reg B what does application mean?
An oral or written request for an extension of credit made in accordance with procedures used by a creditor for the type of Credit requested
What are the options of response after evaluating a completed application?
Deny
Counteroffer
Approve
Within how many days do you have ti notify applicant of action taken?
30 days after receiving a completed application to notify of approval, denial or counter offer