141k views
2 votes
Which statement is FALSE?

A. You can ask an applicant about marital status if the applicant requests secured credit.
B. You can ask about marital status if an applicant request individual, unsecured credit and is relying on property located in a community property state as a basis for repayment.
C. You can use the terms divorced or widowed to describe marital status.
D. You can ask an applicant about marital status if an applicant requests individual, unsecured credit and lives in a community property state.

User Ani
by
8.4k points

1 Answer

3 votes

Final answer:

The false statement is that you can ask an applicant about marital status if the applicant requests secured credit, which is prohibited under the Equal Credit Opportunity Act of 1974.

Step-by-step explanation:

The statement that is FALSE is:
A. You can ask an applicant about marital status if the applicant requests secured credit.

This statement is false because under the Equal Credit Opportunity Act of 1974, creditors are prohibited from discriminating on the basis of marital status, among other factors. Creditors cannot ask about marital status in this context, regardless of whether the credit is secured or unsecured. While there may be exceptions related to community property laws, generally asking about marital status is not allowed when underwriting loans.

Additionally, the term 'community property state' in statements B and D refers to a U.S. state where property acquired during marriage (except by gift or inheritance) is owned jointly by both spouses and is divided upon divorce, annulment, or death. Some community property states may have specific regulations that allow for inquiries into marital status under certain circumstances, however, the general rule upheld by the Equal Credit Opportunity Act would still apply.

User Ichor De Dionysos
by
9.1k points