![]() ![]() The written notice must state the reasons for the denial or identify the person or office from which a statement of the reasons for the denial may be obtained. § 1691(d), within thirty days of taking an adverse action against a credit application, a creditor must provide a written notice of the action. 1984)(untimely notice through a third-party not sufficient) Pierce v. Like other consumer protection statutes, attempted compliance is not sufficient. 1998)(regarding Truth in Lending Act claims but equally applicable to the Equal Credit Opportunity Act.) When a Creditor Takes or Participates in Action on a Credit Application, the Creditor Must Notify the Consumer of the Action and, if the Action is Adverse to the Consumer, Also Send a Written Adverse Action NoticeĪs part of the ECOA’s comprehensive regulation, a creditor must inform a consumer of the action taken on a credit application within thirty days. Like other federal consumer statutes, the protective posture of this legislation is also shown in its enforcement through a system of private attorneys general. When a creditor violates this statute, the creditor is liable for actual damages and statutory damages and a court my grant equitable and declaratory relief. This may include an assignee or potential purchaser of the obligation who influences the credit decision by indicating whether or not it will purchase the obligation if the transaction is consummated.” Official Staff Commentary to Regulation B, 12 C.F.R. The term creditor includes all persons participating in the credit decision. ![]() The Official Staff Commentary is equally clear: “1. § 1691a(e), a creditor for purposes of the Equal Credit Opportunity Act include entities that extend credit or that arrange credit, and assignees of a creditor who participate in the credit decision. When a Financial Institution Participates in the Credit Decision Process, It is a Creditor for Purposes of the ECOA and Subject to the Enforcement Remedies of that Statute ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |