Exactly! Is it a violation or just tacky?
It's probably more tacky than a violation, but if you are auditing it, this would be a good training opportunity to bring this up.
Technically, Reg B doesn't say you can't send a Notice of Action Taken when the application is expressly withdrawn. In fact, the commentary says you are "not required" to send the NAT, but doesn't say you can't:"2. Expressly withdrawn applications. When an applicant expressly withdraws a credit application, the creditor is not required to comply with the notification requirements under §1002.9."
That said, you could have a violation if they put something on the NAT (like a denial reason) that wasn't true.
Again, this is probably a good opportunity for training.
Adam Witmer, CRCM
All statements are my opinion, not those of my employer, and should not be taken as legal advice.www.compliancecohort.com