An applicant has 3 collections totalling $4,200 and a discharged 2022 bankruptcy, and asks whether she can be licensed. Do these credit events automatically disqualify her, or must financial responsibility be evaluated on the record?
Correct Answer
D) Possibly: financial responsibility is a judgment on the whole record
The standard is financial responsibility, character and general fitness such as to command the confidence of the community, which is an assessment of the record rather than a checklist. Other choices: collections are not an automatic bar; credit history is expressly part of the assessment; and a bankruptcy is weighed rather than disqualifying. Source: 12 USC 5104(b)(3)
Why This Is the Correct Answer
The standard is financial responsibility, character and general fitness such as to command the confidence of the community, which is an assessment of the record rather than a checklist. Other choices: collections are not an automatic bar; credit history is expressly part of the assessment; and a bankruptcy is weighed rather than disqualifying. Source: 12 USC 5104(b)(3)
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