(a)
General rule concerning use of information. Except as otherwise
provided in the act and this regulation, a creditor may consider any
information obtained, so long as the information is not used to discriminate
against an applicant on a prohibited basis.
2(1) Except as provided in the
act and this regulation, a creditor shall not take a prohibited basis
into account in any system of evaluating the creditworthiness of applicants.
(2) Age, receipt of public assistance.
(i) Except as permitted in this paragraph, a creditor shall not take
into account an applicant’s age (provided that the applicant has the
capacity to enter into a binding contract) or whether an applicant’s
income derives from any public assistance program.
(ii) In an empirically derived, demonstrably
and statistically sound, credit scoring system, a creditor may use
an applicant’s age as a predictive variable, provided that the age of an
elderly applicant is not assigned a negative factor or value.
(iii) In a judgmental system
of evaluating creditworthiness, a creditor may consider an applicant’s
age or whether an applicant’s income derives from any public assistance
program only for the purpose of determining a pertinent element of
creditworthiness.
(iv) In any system of evaluating creditworthiness, a creditor may
consider the age of an elderly applicant when such age is used to
favor the elderly applicant in extending credit.
6-029
(3) Childbearing, childrearing. In evaluating creditworthiness,
a creditor shall not use assumptions or aggregate statistics relating
to the likelihood that any group of persons will bear or rear children
or will, for that reason, receive diminished or interrupted income
in the future.
(4) Telephone listing. A creditor shall not
take into account whether there is a telephone listing in the name
of an applicant for consumer credit but may take into account whether
there is a telephone in the applicant’s residence.
(5) Income. A creditor shall not discount or exclude from consideration the
income of an applicant or the spouse of an applicant because of a
prohibited basis or because the income is derived from part-time employment
or is an annuity, pension, or other retirement benefit; a creditor
may consider the amount and probable continuance of any income in
evaluating an applicant’s creditworthiness. When an applicant relies
on alimony, child support, or separate maintenance payments in applying
for credit, the creditor shall consider such payments as income to
the extent that they are likely to be consistently made.
6-030
(6) Credit history. To the extent that a creditor considers credit history in evaluating
the creditworthiness of similarly qualified applicants for a similar
type and amount of credit, in evaluating an applicant’s creditworthiness
a creditor shall consider—
(i) the credit history, when available,
of accounts designated as accounts that the applicant and the applicant’s
spouse are permitted to use or for which both are contractually liable;
(ii) on the applicant’s
request, any information the applicant may present that tends to indicate
the credit history being considered by the creditor does not accurately
reflect the applicant’s creditworthiness; and
(iii) on the applicant’s request, the
credit history, when available, of any account reported in the name
of the applicant’s spouse or former spouse that the applicant can
demonstrate accurately reflects the applicant’s creditworthiness.
6-031
(7) Immigration status. A creditor may consider the applicant’s
immigration status or status as a permanent resident of the United
States, and any additional information that may be necessary to ascertain
the creditor’s rights and remedies regarding repayment.
(8) Marital status. Except as otherwise permitted or required by
law, a creditor shall evaluate married and unmarried applicants by
the same standards; and in evaluating joint applicants, a creditor
shall not treat applicants differently based on the existence, absence,
or likelihood of a marital relationship between the parties.
(9) Race, color, religion, national origin, sex. Except as otherwise
permitted or required by law, a creditor shall not consider race,
color, religion, national origin, or sex (or an applicant’s or other
person’s decision not to provide the information) in any aspect of
a credit transaction.
