Question

Unmarried joint applicants learn of the credit decision on their loan two weeks after submitting a completed application. Married joint applicants receive a credit decision within 24 hours after submitting a completed application. This is an example of what type of discrimination?

A. Overt disparate treatment
B. Disparate treatment
C. Comparative disparate treatment
D. No discrimination in this scenario

Answer 1

Unmarried joint applicants waiting longer for a loan decision compared to married applicants exemplifies 'Disparate Treatment' which is illegal under the Equal Credit Opportunity Act. Option B is the correct choice.

Step-by-step explanation:

The scenario described indicates that unmarried joint applicants receive a credit decision on their loan two weeks after submission, whereas married joint applicants receive a decision within 24 hours.

This difference in treatment based on marital status constitutes disparate treatment, which is illegal under the Equal Credit Opportunity Act. This federal law prohibits discrimination in credit decisions based on gender, race, ethnicity, and certain other factors. The correct answer to the question is B. Disparate Treatment, as it involves differential treatment of applicants based on their marital status, which is a prohibited basis for discrimination under the Act.