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#2210603 - 04/08/19 07:28 PM Marital Information on Application
mdog76 Offline
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Joined: Jan 2007
Posts: 645
How do other banks handle or "correct" when the applicant marks a marital information box for a single applicant, unsecured loan when its not supposed to be collected?

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Lending Compliance
#2210620 - 04/08/19 08:33 PM Re: Marital Information on Application mdog76
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,351
document the file and move on. You didn't actively collect it. The applicant provided information you don't need.

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#2210627 - 04/08/19 09:19 PM Re: Marital Information on Application mdog76
Richard Insley Offline
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Richard Insley
Joined: Oct 2000
Posts: 10,070
Toano, VA
Section 1002.12(a)(2) contains the "pardon" that obviates the need to "sanitize" unsolicited information from applicants.
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#2210640 - 04/09/19 11:49 AM Re: Marital Information on Application mdog76
Adam Witmer Offline
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Joined: Sep 2010
Posts: 2,631
The key, as both Truffle and Richard both pointed out, is that the provided information should be unsolicited. Most application forms have a disclosure that the marital status is FOR SECURED CREDIT ONLY or something like that, meaning that you are not requesting it for unsecured loans. If that disclosure isn't there - or if it is obvious that your lender completed the application (such as by phone) - then you would have a problem because you would be requesting it. Otherwise, the best practice (as mentioned) is to document the file in some way to explain that the information was unsolicited and provided by the applicant.
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Adam Witmer, CRCM

All statements are my opinion, not those of my employer, and should not be taken as legal advice.
www.compliancecohort.com

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#2210643 - 04/09/19 12:03 PM Re: Marital Information on Application mdog76
Skittles Online
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Skittles
Joined: Sep 2002
Posts: 13,963
TN
We ended up removing the marital status question on our consumer loan applications to prevent this.
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