Questions and Answers
With regard to indirect lending, if we do not approve an application as submitted and provide a counter-offer to the customer, must the counteroffer be submitted to the customer on an adverse action form?
According to Regulation B, a counteroffer is not considered adverse action if the applicant uses or expressly accepts the credit you offer. Under Reg B, you must make the counteroffer within 30 days after receiving a completed application. If the applicant does not use or expressly accept the counteroffer, you must send notice of adverse action within 90 days of the sending of the counteroffer.
See 12 CFR 202.9(a)(1).
(Posted: 08/19/2008)
