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How many days does a lender have to send a statement of reasons for an adverse action after receiving a request from an applicant?

A) 10 days
B) 30 days
C) 45 days
D) 60 days

User Yaxin
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1 Answer

4 votes

Final answer:

A lender must send a statement of reasons for an adverse action within 30 days of receiving a request from an applicant, as required by the Equal Credit Opportunity Act (ECOA).

Step-by-step explanation:

Under the Equal Credit Opportunity Act (ECOA), a lender must provide a written statement of reasons for an adverse action within 30 days of receiving a completed credit application or a request for the reasons for such action.

An adverse action includes any action by a lender that is unfavorable to the interests of the applicant, such as a denial of credit, change in terms of credit, or a refusal to grant credit in substantially the amount or terms requested.

Therefore, the correct answer to the question is:
B) 30 days

User Oriel
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