Who Does Regulation B Apply To?

April 11, 2012 — 2,969 views  
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According to the Federal Deposit Insurance Corporation, Regulation B is part of the Equal Credit Opportunity Act (ECOA) that states credit is available to all qualified applicants regardless of their age, sex, marital status, color, race, religion or national origin.

It prohibits creditors from discriminating against an applicant for any of these reasons in addition to requiring creditors to notify applicants if action is taken on their applications, such as if it was regretted, and provide this information to both spouses on the account. Regulation B also requires lenders to provide applicants with appraisal reports.

Regulation B is a right for any person applying for a loan. It means that a creditor or bank must take anything you have that proves you are creditworthy into account, including things like cell phone bill payments and rent and utility payments.

“ECOA Reg B provides every American with the Federally protected right to build a credit history and credit score simply by paying everyday accounts on time,” says Michael Nathans, President of Trycera Financial Credit Services to TheMint.com. "Having even one or two ECOA-qualified credit accounts added to your traditional credit reports and scores could change you from a denial to an approval."