Ellen,age 25,was recently divorced and has applied to Mayberry Bank for a loan.The bank,as regulated by the Equal Credit Opportunity Act:
A) can ask her if she is married.
B) can ask her if she plans to have children soon.
C) can discount her loan rating because she is 25 and likely to have children within the next five years.
D) must notify Ellen within 30 days after receiving her credit application of the action taken,and if she is denied credit,the bank must give her specific reasons for the denial.

Question

Quizplus · Accepted Answer

The Equal Credit Opportunity Act prohibits discrimination on the basis of age, sex, marital status, race, and other factors. The bank cannot ask Ellen if she plans to have children, and they cannot discount her loan rating based on her age and likelihood of having children. However, the bank must notify Ellen within 30 days after receiving her credit application of the action taken, and if she is denied credit, the bank must give her specific reasons for the denial. Therefore, the best choice is D.

Ellen,age 25,was Recently Divorced and Has Applied to Mayberry Bank