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Does Reg B prohibit discrimination against an applicant who is involved in lawsuits?

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Question: 
Does Reg B prohibit discrimination against an applicant who is involved in lawsuits under the Consumer Credit Protection Act?
Answer: 

In the definitions section of Reg. B (Section 202.2), paragraph (z) reads: "

(z) Prohibited basis means race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); the fact that all or part of the applicant’s income derives from any public assistance program; or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act or any state law upon which an exemption has been granted by the Board.

So, if the applicant has exercised rights in good faith under CCPA, you cannot use that fact against him/her. By the way, CCPA includes the Electronic Funds Transfer Act and (and of course, Regulation E). So don't turn down a credit application on the basis that a customer was a pain with lots of Reg. E error claims!

First published on BankersOnline.com 05/5/03

First published on 05/05/2003

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