OCC / FCRA – 5. What would constitute a denial of credit?

Compliance > FCRA
Q:  What would constitute a denial of credit?
 
A:  If the credit is subject to any condition (that is, credit would not have been extended without it) because of information in the consumer report, there is a denial that would require disclosures. Such cases are the requirement of a larger down payment, a shorter maturity, a cosigner, guarantor, or additional collateral. If a consumer applies, for example, for a credit card limit of $1,500 and only $1,000 is approved because of information in a consumer report, a denial has occurred.
 
 
This Q&A was obtained from the Comptroller’s Handbook on Fair Credit Reporting that may be found here:  https://www.occ.gov/publications-and-resources/publications/comptrollers-handbook/files/fair-credit-reporting/index-fair-credit-reporting.html
 

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