(a) Standards for programs. Subject to the provisions of paragraph
(b) of this section, the Act and this part permit a creditor to extend
special purpose credit to applicants who meet eligibility requirements
under the following types of credit programs:
(1) Any credit assistance program expressly
authorized by Federal or state law for the benefit of an economically
disadvantaged class of persons;
(2) Any credit assistance program offered
by a not-for-profit organization, as defined under section 501(c)
of the Internal Revenue Code of 1954, as amended, for the benefit
of its members or for the benefit of an economically disadvantaged
class of persons; or
(3) Any special purpose credit program offered by a for-profit organization,
or in which such an organization participates to meet special social
needs, if:
(i) The program is established and administered
pursuant to a written plan that identifies the class of persons that
the program is designed to benefit and sets forth the procedures and
standards for extending credit pursuant to the program; and
(ii) The program is established
and administered to extend credit to a class of persons who, under
the organization’s customary standards of creditworthiness, probably
would not receive such credit or would receive it on less favorable
terms than are ordinarily available to other applicants applying to
the organization for a similar type and amount of credit.
6-5040
(b) Rules in other sections.
(1) General applicability. All the provisions of this part apply
to each of the special purpose credit programs described in paragraph
(a) of this section except as modified by this section.
(2) Common characteristics. A program described in paragraph (a)(2)
or (a)(3) of this section qualifies as a special purpose credit program
only if it was established and is administered so as not to discriminate
against an applicant on any prohibited basis; however, all program
participants may be required to share one or more common characteristics
(for example, race, national origin, or sex) so long as the program
was not established and is not administered with the purpose of evading
the requirements of the Act or this part.
6-5041
(c) Special rule concerning requests and
use of information. If participants in a special purpose credit
program described in paragraph (a) of this section are required to
possess one or more common characteristics (for example, race, national
origin, or sex) and if the program otherwise satisfies the requirements
of paragraph (a) of this section, a creditor may request and consider
information regarding the common characteristic(s) in determining
the applicant’s eligibility for the program.
6-5042
(d) Special rule in the case of financial need. If financial need is one of the criteria under a special purpose
credit program described in paragraph (a) of this section, the creditor
may request and consider, in determining an applicant’s eligibility
for the program, information regarding the applicant’s marital status;
alimony, child support, and separate maintenance income; and the spouse’s
financial resources. In addition, a creditor may obtain the signature
of an applicant’s spouse or other person on an application or credit
instrument relating to a special purpose credit program if the signature
is required by Federal or state law.
