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Bankruptcy Discrimination and Iowa Law

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Question: 
I've heard there is an Iowa state regulation that prohibits turning down an Iowa loan applicant because of bankruptcy. What prompted that legislation? What are acceptable reasons for a turndown?
Answer: 

Here is a quote from the Iowa Banking Guide, a great resource produced by the Iowa Bankers Association (call 8005321423 and pay about $75 well worth it):

A 1976 Attorney General's Opinion offers an interpretation of Chapter 537.3311 of the Code, relating to illegal discrimination and states:

A creditor may not refuse to grant credit solely because a consumer has taken bankruptcy sometime prior to applying for credit, but a creditor may take into consideration the prior credit history of the consumer, including those factors which might have led the consumer to file for bankruptcy.

If you would like a copy of the Attorney General's Opinion, contact the IBA's Compliance Department at 8005321423

First published on BankersOnline.com 7/1/02

First published on 07/01/2002

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