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Joint Application-One of Applicants is a Minor

If the bank receives a joint application but one of the joint applicants is a minor, can the bank deny the loan based on age of one individual (the minor) without facing possible discrimination? Under ECOA an institution may treat credit applicants different when under the age of majority based on state laws. But what if it is joint and the other applicant is of age?

by Randy Carey:

Since a minor does not have the capacity to contract, you can deny the loan application. There is no discrimination involved. The remaining applicant is free to reapply on their own.


by Richard Insley:

Consistency is important. You have a joint application and one applicant is qualified. Handle this case the same way as if the other applicant is bankrupt, out of market, or otherwise unqualified.

First published on 07/15/2018

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