6.2-503 - (Effective October 1, 2010) Statement of reasons for adverse action. - Virginia Statutes

§ 6.2-503. (Effective October 1, 2010) Statement of reasons for adverseaction.

A. Each applicant against whom adverse action is taken shall be entitled to astatement of reasons for the action on the application from the creditor. Acreditor shall satisfy this obligation by:

1. Providing statement of reasons in writing as a matter of course toapplicants against whom adverse action is taken; or

2. Giving written notification of adverse action that discloses (i) theapplicant's right to a statement of reasons within 30 days after receipt bythe creditor of a request made within 60 days after such notification and(ii) the identity of the person or office from which such statement may beobtained. The statement may be given orally if the written notificationadvises the applicant of his right to have the statement of reasons confirmedin writing on written request.

B. A statement of reasons meets the requirements of this section only if itcontains the specific reasons for the adverse action taken.

C. Where a creditor has been requested by a third party to make a specificextension of credit directly or indirectly to an applicant, the notificationand statement of reasons required by this section may be made directly bysuch creditor, or indirectly through the third party, provided in either casethat the identity of the creditor is disclosed.

D. The requirements of subsections A, B, and C may be satisfied by oralstatements or notifications in the case of any creditor who did not act onmore than 150 applications during the calendar year preceding the calendaryear in which the adverse action is taken, as determined under regulations ofthe Commission.

(1977, c. 589, § 59.1-21.21:1; 2002, c. 747; 2010, c. 794.)