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Financial Education
When you are turned down for a loan
If you apply for a loan and are turned down, the lender must notify
you, in writing, within 30 days of
the completed application. This notification is required by ECOA.
The notice will contain:
- The name and address of the creditor
- The name and address of the federal agency you can write to if you
feel you have been discriminated against, and
- Either a statement of specific reasons for denial or a notice that
you may request the specific reasons for your denial.
If you are denied credit because of information in your credit report,
the lender is required to notify you. This notification is required
by the Fair Credit Reporting Act or FCRA. The notice is usually
combined with your denial notice. The FCRA notice should contain:
- The name, address and telephone number of the consumer reporting
agency that provided the report to the lender.
- a statement that the consumer reporting agency did not make the decision
to deny your application.
- A notice of your right to obtain a free copy of your credit report
within 60 days of receiving the notice.
- A notice of your right to dispute the information in your credit
report.
(The To Your Credit course covers credit reports and how to correct
inaccurate information)
What action can you take if you feel you have been denied a loan based
on a prohibited basis?
- Complain to the creditor in writing and keep a copy. The lender
may find an error and reverse the decision.
- Report possible violations to the appropriate government agency. The
agency's name and address will be listed on your denial notice.
There are also laws that protect your rights after
you get a loan. |
Keep It Safe
