Adverse Action Letters Under the New Reg B

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Question:

We sent an adverse action notice that does not list the reasons for the denial. The customer can write us requesting the reasons and we send a second letter. Will the new Reg B change require us to change our procedure?

Answer:

No. You may continue to use the same procedure. Just be sure that, if the customer does request reasons, you give the principle and specific reasons. The revisions to Regulation B tighten up the standards for specificity and clarity of reasons.

First published on BankersOnline.com 05/12/03