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#2230114 - 02/03/20 04:45 PM Medical Information and Approval of Loan
TeamComply Offline
Gold Star
Joined: Aug 2016
Posts: 439
Applicant had paid medical collections on bureau, all are paid now, and applicant has manageable debt now, as a result of these paid collections; so this information (paid medical collections) provides strength for approving the loan. Can anything with regard to this be noted in the file (to support approval of the loan)? We try to refrain from stating anything medical (related) in the loan file to avoid any potential FCRA issues, so that is the reasoning for the question.

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#2230118 - 02/03/20 05:40 PM Re: Medical Information and Approval of Loan TeamComply
burke116 Offline
Platinum Poster
Joined: Jun 2014
Posts: 536
RVA
I think if you're just talking about the debt itself (which happens to have been medical in nature) then you are fine.

(d) Financial information exception for obtaining and using medical information. (1) In general. A creditor may obtain and use medical information pertaining to a consumer in connection with any determination of the consumer's eligibility, or continued eligibility, for credit so long as:
(i) The information is the type of information routinely used in making credit eligibility determinations, such as information relating to debts, expenses, income, benefits, assets, collateral, or the purpose of the loan, including the use of proceeds;
(ii) The creditor uses the medical information in a manner and to an extent that is no less favorable than it would use comparable information that is not medical information in a credit transaction; and
(iii) The creditor does not take the consumer's physical, mental, or behavioral health, condition or history, type of treatment, or prognosis into account as part of any such determination.

(2) Examples. (i) Examples of the types of information routinely used in making credit eligibility determinations. Paragraph (d)(1)(i) of this section permits a creditor, for example, to obtain and use information about:
(A) The dollar amount, repayment terms, repayment history, and similar information regarding medical debts to calculate, measure, or verify the repayment ability of the consumer, the use of proceeds, or the terms for granting credit;

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