Page:United States Statutes at Large Volume 90 Part 1.djvu/302

 90 STAT. 252

PUBLIC LAW 94-239—MAR. 23, 1976

" (2) any credit assistance program administered by a nonprofit organization for its members or an economically disadvantaged class of persons; or " (3) any special purpose credit program offered by a profitm a k i n g organization to meet special social needs which meets standards prescribed in regulations by the B o a r d; if such refusal is required by or made pursuant to such program. " (d)(1) W i t h i n t h i r t y days (or such longei reasonable time as Notice. specified in regulations of the Board for any class of credit transaction) after receipt of a completed application for credit, a creditor shall notify the applicant of its action on the application. Statement of " (2) E a c h applicant against whom adverse action is taken shall be reasons. entitled to a statement of reasons for such action from the creditor. A creditor satisfies this obligation by— " (A) providing statements of reasons in writing as a matter of course to applicants against whom adverse action is t a k e n; or " (B) giving written notification of adverse action which discloses (i) the applicant's r i g h t to a statement of reasons within t h i r t y days after receipt by the creditor of a request made within sixty days after such notification, and (ii) the identity of the person or office from which such statement may be obtained. Such statement may be given orally if the written notification advises the applicant of his right to have the statement of reasons confirmed in writing on written request. " (3) A statement of reasons meets the requirements of this section only if it contains the specific reasons for the adverse action taken. " (4) Where a creditor has been requested by a t h i r d party to make a specific extension of credit directly or indirectly to an applicant, the notification and statement of reasons required by this subsection may be made directly by such creditor, or indirectly through the t h i r d party, provided in either case that the identity of the creditor is disclosed. " (5) The requirements of paragraph (2), (3), or (4) may be satisfied by verbal statements or notifications in the case of any creditor who did not act on more than one hundred and fifty applications during the calendar year preceding the calendar year in which the adverse action is taken, as determined under regulations of the Board. "Adverse " (6) For purposes of this subsection, the term 'adverse action' action." means a denial or revocation of credit, a change in the terms of an existing credit arrangement, or a refusal to g r a n t credit in substantially the amount or on substantially the terms requested. Such term does not include a refusal to extend additional credit under an existing credit arrangement where the applicant is delinquent or otherwise in default, or where such additional credit would exceed a previously established credit limit.". SEC. 3. (a) Section 703 of the E q u a l Credit Opportunity Act is 15 USC 1691b. amended— (1) by inserting " (a) " immediately before " The B o a r d "; (2) by inserting after the second sentence thereof the following new sentence: " I n particular, such regulations may exempt from one or more of the provisions of this title any class of transactions not primarily for personal, family, or household purposes, if the Board makes an express finding that the application of such provision or provisions would not contribute substantially to carrying out the purposes of this title."; and (3) by adding at the end thereof the following new subsection: Consumer " (b) The Board shall establish a Consumer Advisory Council to Advisory Council. advise and consult with it in the exercise of its functions under the Establishment.

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