Notification of Credit Denial

The following is an example of a letter that you might receive if you were denied credit or a request for a loan:

Date

Dear Applicant,
Thank you for your recent application. Your request for a loan was carefully considered, and we regret that we are unable to approve your application at this time, for the following reasons:

Your Income:
___Is below our minimum requirement
___Is insufficient to sustain payments on the amount of credit requested.
___Could not be verified.

Your employment:
___Is not of sufficient length to qualify
___Could not be verified

Your credit history:
___of making payments on time was not satisfactory.
___could not be verified.

Your application:
___Lacks a sufficient number of credit references.
___Lacks acceptable types of credit references.
___Reveals that current obligations are excessive in relation to income.

Other:

The consumer reporting agency contacted that provided information that influenced our decision in the whole or in part was [name, address, and [toll-free] telephone number of the reporting agency]. The reporting agency is unable to supply specific reasons why we have denied credit to you. You do, however, have a right under the Fair Credit Reporting Act to know the information contained in your credit file. You also have a right to a free copy of your report from the reporting agency, if you request it no later than 60 days after you receive this notice. In addition, if you find that any information contained in the report you receive is inaccurate or incomplete, you have the right to dispute the matter with the reporting agency. Any questions regarding such information should be directed to [consumer reporting agency].

If you have any questions regarding this letter, you should contact us at [creditor’s name, address, and telephone number].

NOTICE:
The federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is FDIC Regional Office.