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#2249172 - 02/12/21 04:42 PM New Loan Req'st Currently in Deferment-Denial Reas
ItsJustMe Offline
Gold Star
Joined: Dec 2009
Posts: 298
New York
It is our policy that borrowers with a loan that is currently in active deferment are denied new credit. Is “poor performance with us” a permissible adverse action reason? Our most common scenario is a member has one loan (in deferment), no other delinquencies, and the deferment is because of a financial hardship. This doesn’t fall under poor performance with us, really.

Would a valid AA reason be “we don’t grant additional credit when in deferment”?

I'm stumped on this one and searching for a valid reason to deny the new loan request.

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#2249173 - 02/12/21 04:43 PM Re: New Loan Req'st Currently in Deferment-Denial Reas ItsJustMe
Skittles Online
10K Club
Skittles
Joined: Sep 2002
Posts: 13,965
TN
I agree with you that 'poor performance with us' is not a good option if they are currently under an agreed deferment.
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