Incomplete application - denial for reasons other than incompleteness. The creditor has the option, alternatively, of providing a notice of incompleteness under § 1002.9(c).Ĥ. When an application is incomplete regarding information that the applicant can provide and the creditor lacks sufficient data for a credit decision, the creditor may deny the application giving as the reason for denial that the application is incomplete. Incomplete application - denial for incompleteness. For example, the creditor will satisfy the notification requirement when it gives the applicant the credit card, money, property, or services requested.ģ. Notification of approval may be express or by implication. Once a creditor has obtained all the information it normally considers in making a credit decision, the application is complete and the creditor has 30 days in which to notify the applicant of the credit decision. Timing of notice - when an application is complete. (a) Notification of action taken, ECOA notice, and statement of specific reasons -ġ. See interpretation of this section in Supplement I
For example, if the creditor tells the consumer that it would not approve an application for a mortgage because of a bankruptcy in the consumer's record, the creditor has denied an application for credit. On the other hand, a creditor has treated a request as an application, and is subject to the adverse action notice requirements of § 1002.9 if, after evaluating information, the creditor decides that it will not approve the request and communicates that decision to the consumer. For instance, a creditor may treat the request as an inquiry if the creditor evaluates specific information about the consumer and tells the consumer the loan amount, rate, and other terms of credit the consumer could qualify for under various loan programs, explaining the process the consumer must follow to submit a mortgage application and the information the creditor will analyze in reaching a credit decision. Whether a creditor must provide a notice of action taken for a prequalification request depends on the creditor's response to the request, as discussed in comment 2(f)-3. The notifications required under § 1002.9 may appear on either or both sides of a form or letter.ĥ. Notification occurs when a creditor delivers or mails a notice to the applicant's last known address or, in the case of an oral notification, when the creditor communicates the credit decision to the applicant.Ĥ. (The creditor must comply, however, with the record retention requirements of the regulation. When an applicant expressly withdraws a credit application, the creditor is not required to comply with the notification requirements under § 1002.9. In notifying an applicant of adverse action as defined by § 1002.2(c)(1), a creditor may use any words or phrases that describe the action taken on the application.Ģ.
The regulation does not require that a creditor use the term adverse action in communicating to an applicant that a request for an extension of credit has not been approved.
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