Are any of you choosing to use the sample form C-5 (does not disclose reasons for decline) from Reg. B for Adverse Action notices rather than the C-1 (does disclose reasons for decline)? Why or why not? One reason I would think you would not want to would be the amount of calls it would generate, but I maybe there is a good argument to using this form. Thoughts?

We use C-1 and C-6, however,C-6 is used within our Morgage division. For consumer, we prefer letting them know why we can not grant them credit.

Tina A Sweet-Williams
Gold Country Bank, NA
Marysville, Ca. 95901
mailto:tsweet@goldcountrynb.com

We have some client banks that use the C-5 form (no reasons given). They all say that rarely do people call and ask for the reasons. Most know why or the loan officer explained it to the applicant when they told them no on the phone/in person. This saves from "beating up" on the applicants. I don't think that most banks know that they can do - otherwise, I think more would use it.

We use that form in our sales finance area and rarely does the consumer contact the bank for the specific reasons. We decided to use this form in that department b/c the consumer is usually driving the new car around that we had denied the credit request for and they don't care that they were denied by our bank!