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Each depositor insured to at least $250,000 per insured bank

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5000 - Statements of Policy



EQUAL CREDIT OPPORTUNITY AND FAIR HOUSING ACTS
ENFORCEMENT POLICY STATEMENT

The objective of this enforcement policy statement is to ensure that the rights of credit applicants are protected by requiring creditors to take corrective action for certain, more serious past violations of the Equal Credit Opportunity and Fair Housing Acts as well as to be in compliance in the future. In an effort to achieve that objective, the agencies will encourage voluntary correction and compliance with the Acts. Whenever violations addressed by this policy statement are discovered, the creditor will be required to take action to ensure that such violations will not recur and to correct the effects of violations discovered.

The agencies will generally require the creditor to take action to correct conditions resulting from violations occurring within 24 months prior to the discovery of violations by an agency, except for violations concerning adverse action notices for which corrective action will be required for violations occurring within six months prior to discovery.

Violations in the following areas are considered serious by the agencies and will usually be subject to retrospective corrective action:

• Discouraging applicants on a prohibited basis in violation of the Fair Housing Act or § 202.4 or § 202.5(a) of Regulation B.1

• Using credit criteria in a discriminatory manner in evaluating applications in violation of the Fair Housing Act or §§ 202.4 through 202.7 of Regulation B.

• Imposing different terms on a prohibited basis in violation of the Fair Housing Act or § 202.4 or § 202.6(b) of Regulation B.

• Requiring cosigners, guarantors or the like on a prohibited basis in violation of § 202.7(d) of Regulation B.

• Failing to furnish separate credit histories as required by § 202.10 of Regulation B.

• Failing to provide an adequate notice of adverse action under § 202.9 of Regulation B.

This policy statement will neither preclude the use of any administrative authority that any of the agencies possess to enforce these laws, nor limit the agencies' discretion to take other action to correct conditions resulting from violations of these laws, nor preclude referral of cases to the Attorney General. Additionally, this policy statement does not foreclose a credit applicant's right to bring civil action under Equal Credit Opportunity or Fair Housing Acts or to file a complaint with the Department of Justice or the Department of Housing and Urban Development for violations of housing laws. Further, this policy statement does not supersede or substitute for any regulations or enforcement policies issued by any of the agencies or the Department of Housing and Urban Development under the Fair Housing Act.

By order of the Federal Financial Institutions Examination Council, November 6, 1981.

[Source: 46 Fed. Reg. 56500, November 17, 1981]

1 Regulation B (12 CFR 202) of the Federal Reserve Board implements the Equal Credit Opportunity Act pursuant to section 703(a) of the Act. Go back to Text


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