ECOA and Reg B: Action Taken and Notifications - 12 CFR 1002.2 and 1002.9

Question 1

When must a creditor notify an applicant of action taken on a completed application?

Answer 1

Within 30 days of receipt of the completed application

Question 2

How long does an applicant have to request specific reasons for adverse action taken on their application?

Answer 2

The request must be made within 60 days of the transmission of the adverse action notice.

Question 3

What information must a written adverse action notice contain?

Answer 3

1. Statement of the action taken
2. Name and address of the creditor
3. ECOA notice
4. Name and address of the creditor’s federal agency/regulator that administers ECOA
5. Statement of specific reasons for the adverse action, or disclosure of the applicant’s right to receive specific reasons within 30 days of a request
   *If the latter, the disclosure must include the name, address and telephone number of the person or office from which the statement of reasons can be obtained.

Question 4

Who must receive notifications when there are multiple applicants?

Answer 4

Notification need only be given to one applicant, but it must be the primary applicant, if known

Question 5

When is an application considered to be withdrawn?

Answer 5

Only when the applicant expressly withdraws or when an application has been approved but not yet communicated, and the applicant does not contact the lender for status

Question 6

How must notification be communicated on a loan approval?

Answer 6

Orally, written or by implication

Question 7

When must a creditor notify an applicant of a counteroffer?

Answer 7

Within 90 days after notifying the applicant of a counteroffer (if not expressly accepted)

Question 8

When must a creditor notify an applicant of an adverse action taken on an existing account?

Answer 8

Within 30 days after taking adverse action

Question 9

When must a creditor notify an applicant of an adverse action taken on an incomplete application?

Answer 9

Within 30 days after taking adverse action

Question 10

For businesses with gross revenues > $1 million in the preceding fiscal year, how long does an applicant have to make a written request for specific reasons for adverse action taken?

Answer 10

Within 60 days of notification of the adverse action

Question 12

For businesses with gross revenues > $1 million in the preceding fiscal year, when and how must an applicant be notified of action taken?

Answer 12

Within a “reasonable amount of time”, orally or in writing

Question 13

When must the Notice of Incomplete Application be sent to the applicant?

Answer 13

Within 30 days of receipt of an application that is incomplete

Question 14

What are the required components of a Notice of Incomplete Application?

Answer 14

1. Specifics regarding the information that’s needed
2. The reasonable time period for the applicant to provide the information
3. State that failure to provide the information requested will result in no further consideration being given to the application

Question 15

What is the creditor’s obligation once a Notice of incompleteness is delivered to the applicant?

Answer 15

None.