I agree that it is not required but not responding is just not kosher and officially closes out the application. We also do not offer education or education related loans at this time. We do send adverse action notice that states: We do not grant credit on the terms and conditions requested. If you want to get technical and speak to the "type" of credit then I wouldn't see a problem with "We do not offer the type of credit or credit plan requested" which actually makes more sense.
Another thought, limit the choices for loan purpose not allowing for a free form field. We are going to attempt the following for consumer non-real estate online portal. Any input is appreciated. Note a few of them will activate particular templates based on selection: Purchase Auto, Purchase Motorcycle, Refinance, Purchase RV, Purchase Watercraft, Home Improvement, Debt Consolidation, Consumer Goods, Life Event, Medical-Healthcare, Personal Expense, Personal Investment, Recreation-Entertainment and Unplanned Emergency.