(2) Admissible applications. A creditor may request any information about an applicant`s spouse (or former spouse referred to in subparagraph (c)(2)(v) of this section) that may be requested about the applicant if: (w) the credit is a loan provided under a plan under which a creditor may enable an applicant to make purchases or obtain loans from time to time directly from the creditor or indirectly using a credit card; Check or other device. 2. Current or late non-payment. The term “adverse act” does not include termination of an account by a creditor if the account holder is currently in default or in default with that account. However, the notification provided for in Article 1002(9) of the Regulation is in principle required if the creditor`s action is based on a previous late payment or a late account. 1. Loan application. If the applicant has filed an application in accordance with the creditor`s procedures, the refusal to refinance or extend the term of a transaction or other loan is prejudicial. 1. Point-of-sale transactions. The refusal of credit at the point of sale is not an adverse act, except in the circumstances provided for by the regulation. For example, point-of-sale rejection is not an adverse act in the following situations: ii) In an empirically calculated, demonstrably and statistically sound credit scoring system, a lender may use an applicant`s age as a predictor, unless a negative factor or value is assigned to the age of an older applicant.
(d) public loans. (1) Definition. Government loans refer to loans to governments or subdivisions, agencies or government instruments. A letter of credit, sometimes called a creditor`s invoice, is a written act of a bank or merchant in a place where a person or specifically named person is asked to send money or items on credit to the person holding or named in the letter. The repayment of the debt is guaranteed by the bank or merchant issuing the letter. Letters of credit are popular in international trade because they allow parties to do business without having to exchange large sums of money. This type of instrument was also popular before the widespread use of credit cards and traveler`s cheques. ii.
The amount of a transaction exceeds a cash advance or credit limit. (c) information about a previous spouse or spouse. (1) As a general rule. Except as permitted by this subsection, a creditor may not request information about the spouse or former spouse of an applicant. (iii) A creditor that has filed HMDA data for one of the preceding five calendar years but is not currently a financial institution under 12 CFR 1003.2(g) may collect information about an applicant`s ethnicity, race, and gender for a loan that would otherwise be a loan covered under 12 CFR 1003.2(e) unless excluded by 12 CFR 1003.3(c)(11) or (12); (a) discrimination. A lender shall not discriminate against an applicant with respect to any aspect of a credit transaction on a prohibited basis. 1. Definition. The criterion for deciding whether a transaction qualifies as a business loan is one of the main objectives.
For example, an open credit account used for personal and business purposes is not a business loan unless the primary purpose of the account is related to the business. A lender may rely on an applicant`s explanation of the purpose of the loan requested. A consumer asks about the terms of a home loan and informs the loan officer of his or her income and expected down payment, but the loan officer only explains the lender`s loan-to-value ratio and other basic credit guidelines without telling the consumer if they qualify for the loan. (iv) a refusal to extend credit because applicable law prohibits the creditor from extending the credit requested; or The Unified Small Credit Act was subsequently revised, but it was important because it paved the way for legal loans to consumers. It was created as an exception to state usury laws and provided the model for the subsequent creation of consumer credit laws. (ii) the creditor requests this information to monitor compliance with the Federal Act on Equal Opportunities; The term credit has various uses for operations involving a loan. The balance can be used in relation to the ability to defer payment, as in the case of a person who has credit with a local store that allows the purchase of items on a weekly basis and payment of the invoice due once a month.