An applicant's loan is denied, and the lender sends an adverse action notice 35 days after the decision. The applicant claims this violates Regulation B. The lender's timing:
Correct Answer
B) Violates Regulation B because notices must be sent within 30 days
Regulation B requires that adverse action notices be provided within 30 days after taking adverse action on an application. The 35-day timeframe exceeds this requirement and constitutes a violation, regardless of whether the applicant requested the notice.
Why This Is the Correct Answer
Regulation B requires that adverse action notices be provided within 30 days after taking adverse action on an application. The 35-day timeframe exceeds this requirement and constitutes a violation, regardless of whether the applicant requested the notice.
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