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#245566 - 09/16/04 07:13 PM Reb B denial reasons

Can you deny someone for accounts being paid by a Financial Counseling Program?

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Lending Compliance
#245567 - 09/17/04 04:12 PM Re: Reb B denial reasons
Dorothy W Offline
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Dorothy W
Joined: Aug 2004
Posts: 164
Upstate SC
If the applicant is using a service to pay their bills because they can't remember to write out their own checks in a timely matter - why would the bank care for repayment purposes? If you're that worried about a bill payment service - ask for payments by automatic debits.

If this service is a result of past poor performance on debts and these debts have been renegotiated (charged down) - the applicant's credit score and payment history should reflect their poor payment record. These issues should be your basis for denial - not whom the payment would be remitted by.

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#245568 - 07/26/05 11:42 PM Re: Reb B denial reasons
Jan94 Offline
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Joined: Mar 2001
Posts: 828
I'm tagging on to this old thread as it is applicable to my question. Our credit scoring program provides that if an applicant's credit bureau reflects a Public Record or trade line indicating that they had filed for Financial Counseling within past 48 months, that the application will be declined. Financial Counseling is not one of the reasons in the Reg B Model form, but there is an "Other". Can we indicate "Financial Counseling" as a reason on our AAN? Thank you.

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#245569 - 07/27/05 02:33 AM Re: Reb B denial reasons
Andy_Z Offline
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Joined: Oct 2000
Posts: 27,590
On the Net
If that is what you are basing your decision on. It isn't a prohibited basis.
My opinions are not necessarily my employers.
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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