C.F.R. » Title 12 » CHAPTER II—FEDERAL RESERVE SYSTEM › SUBCHAPTER A—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM › PART 202—EQUAL CREDIT OPPORTUNITY ACT (REGULATION B)

12 C.F.R. § 202.9

Notifications

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(a) Notification of action taken, ECOA notice, and statement of specific reasons—(1) When notification is required. A creditor shall notify an applicant of action taken within:

(i) 30 days after receiving a completed application concerning the creditor's approval of, counteroffer to, or adverse action on the application;

(ii) 30 days after taking adverse action on an incomplete application, unless notice is provided in accordance with paragraph (c) of this section;

(iii) 30 days after taking adverse action on an existing account; or

(iv) 90 days after notifying the applicant of a counteroffer if the applicant does not expressly accept or use the credit offered.

(2) Content of notification when adverse action is taken. A notification given to an applicant when adverse action is taken shall be in writing and shall contain a statement of the action taken; the name and address of the creditor; a statement of the provisions of § 701(a) of the Act; the name and address of the federal agency that administers compliance with respect to the creditor; and either:

(i) A statement of specific reasons for the action taken; or

(ii) A disclosure of the applicant's right to a statement of specific reasons within 30 days, if the statement is requested within 60 days of the creditor's notification. The disclosure shall include the name, address, and telephone number of the person or office from which the statement of reasons can be obtained. If the creditor chooses to provide the reasons orally, the creditor shall also disclose the applicant's right to have them confirmed in writing within 30 days of receiving the applicant's written request for confirmation.

(3) Notification to business credit applicants. For business credit, a creditor shall comply with the notification requirements of this section in the following manner:

(i) With regard to a business that had gross revenues of $1 million or less in its preceding fiscal year (other than an extension of trade credit, credit incident to a factoring agreement, or other similar types of business credit), a creditor shall comply with paragraphs (a)(1) and (2) of this section, except that:

(A) The statement of the action taken may be given orally or in writing, when adverse action is taken;

(B) Disclosure of an applicant's right to a statement of reasons may be given at the time of application, instead of when adverse action is taken, provided the disclosure contains the information required by paragraph (a)(2)(ii) of this section and the ECOA notice specified in paragraph (b)(1) of this section;

(C) For an application made entirely by telephone, a creditor satisfies the requirements of paragraph (a)(3)(i) of this section by an oral statement of the action taken and of the applicant's right to a statement of reasons for adverse action.

(ii) With regard to a business that had gross revenues in excess of $1 million in its preceding fiscal year or an extension of trade credit, credit incident to a factoring agreement, or other similar types of business credit, a creditor shall:

(A) Notify the applicant, within a reasonable time, orally or in writing, of the action taken; and

(B) Provide a written statement of the reasons for adverse action and the ECOA notice specified in paragraph (b)(1) of this section if the applicant makes a written request for the reasons within 60 days of the creditor's notification.

(b) Form of ECOA notice and statement of specific reasons—(1) ECOA notice. To satisfy the disclosure requirements of paragraph (a)(2) of this section regarding section 701(a) of the Act, the creditor shall provide a notice that is substantially similar to the following: The federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning this creditor is [name and address as specified by the appropriate agency listed in appendix A of this regulation].

(2) Statement of specific reasons. The statement of reasons for adverse action required by paragraph (a)(2)(i) of this section must be specific and indicate the principal reason(s) for the adverse action. Statements that the adverse action was based on the creditor's internal standards or policies or that the applicant, joint applicant, or similar party failed to achieve a qualifying score on the creditor's credit scoring system are insufficient.

(c) Incomplete applications—(1) Notice alternatives. Within 30 days after receiving an application that is incomplete regarding matters that an applicant can complete, the creditor shall notify the applicant either:

(i) Of action taken, in accordance with paragraph (a) of this section; or

(ii) Of the incompleteness, in accordance with paragraph (c)(2) of this section.

(2) Notice of incompleteness. If additional information is needed from an applicant, the creditor shall send a written notice to the applicant specifying the information needed, designating a reasonable period of time for the applicant to provide the information, and informing the applicant that failure to provide the information requested will result in no further consideration being given to the application. The creditor shall have no further obligation under this section if the applicant fails to respond within the designated time period. If the applicant supplies the requested information within the designated time period, the creditor shall take action on the application and notify the applicant in accordance with paragraph (a) of this section.

(3) Oral request for information. At its option, a creditor may inform the applicant orally of the need for additional information. If the application remains incomplete the creditor shall send a notice in accordance with paragraph (c)(1) of this section.

(d) Oral notifications by small-volume creditors. In the case of a creditor that did not receive more than 150 applications during the preceding calendar year, the requirements of this section (including statements of specific reasons) are satisfied by oral notifications.

(e) Withdrawal of approved application. When an applicant submits an application and the parties contemplate that the applicant will inquire about its status, if the creditor approves the application and the applicant has not inquired within 30 days after applying, the creditor may treat the application as withdrawn and need not comply with paragraph (a)(1) of this section.

(f) Multiple applicants. When an application involves more than one applicant, notification need only be given to one of them but must be given to the primary applicant where one is readily apparent.

(g) Applications submitted through a third party. When an application is made on behalf of an applicant to more than one creditor and the applicant expressly accepts or uses credit offered by one of the creditors, notification of action taken by any of the other creditors is not required. If no credit is offered or if the applicant does not expressly accept or use the credit offered, each creditor taking adverse action must comply with this section, directly or through a third party. A notice given by a third party shall disclose the identity of each creditor on whose behalf the notice is given.

[Reg. B, 68 FR 13161, Mar. 18, 2003, as amended at 72 FR 63451, Nov. 9, 2007]
Notes of Decisions
Cited in 60 cases (9 in the last 5 years), 1979–2026 · leading case: Diaz v. Paragon Motors of Woodside, Inc., 424 F. Supp. 2d 519 (E.D.N.Y 2006).
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Diaz v. Paragon Motors of Woodside, Inc., 424 F. Supp. 2d 519 (E.D.N.Y 2006). · cites it 8× “1998) (citing 12 CFR § 202.9 (a)(l)(i) (“A creditor shall notify an applicant of action .”
Durdin v. Cheyenne Mountain Bank, 98 P.3d 899 (Colo. Ct. App. 2004). · cites it 2× “§ 1691e and 12 C.F.R. § 202.9 because he was not an "applicant.”
Anitra D. Davis v. U.S. Bancorp, Doing Bus. as U.S. Bank Nat'l Ass'n John Doe Mary Roe Persons Unknown, 383 F.3d 761 (8th Cir. 2004). · cites it 3× “See 12 C.F.R. § 202.9 . The statute states that the thirty days begin to run once the application is complete.”
Newton v. United Companies Fin. Corp., 24 F. Supp. 2d 444 (E.D. Pa. 1998). · cites it 4× “” 12 C.F.R. § 202.9 (a)(l)(i). Thus, under ECOA there are three distinct kinds of action a creditor might take, each triggering a notice requirement: an approval, a counteroffer, and an .”
Diaz v. Virginia Hous. Dev. Auth., 117 F. Supp. 2d 500 (E.D. Va. 2000). · cites it 6× “12 C.F.R. § 202.9 (a)(l)(i). In these circumstances, it is well-settled under the doctrine of ex-pressio unius est exclusio alterius that “[w]hen a statute limits a thing to be done in a particular mode, it includes the negative of any other mode.”
Roque Alexander Barat v. Navy Fed. Credit Union, 127 F.4th 833 (11th Cir. 2025). · cites it 2× “And “adverse action” means “a denial or revocation of credit, a change in the terms of an existing credit arrangement, or a refusal to grant credit in substantially the amount or on substantially the terms re- quested.”
Cannon v. Metro Ford. Inc., 242 F. Supp. 2d 1322 (S.D. Fla. 2002). · cites it 2× “(3) Fair Credit Reporting Act (“FCRA”) The FCRA provides that “[i]f any person takes any adverse action with respect to any consumer that is based in whole or in part on any information contained in a consumer report,” the person must provide notice of the adverse action to the…”
Bruce Thompson & Paula Forney-Thompson v. Galles Chevrolet Co. & Gen. Motors Acceptance Corp., Defendants, 807 F.2d 163 (10th Cir. 1986). · cites it 5× “THE DECISION OF THE DISTRICT COURT The district court found no violation of 12 C.F.R. § 202.9 (a)(2). After recounting the basic facts leading up to the dispute, the judge wrote: Based on these facts, the Court finds that no violation has occurred.”
Charlotte Mays v. Buckeye Rural Elec. Coop., Inc. & Frederick B. Parker, 277 F.3d 873 (6th Cir. 2002). “Plaintiff next claims that Defendants violated 12 C.F.R. § 202.9 (a), (b), and (c) by failing to provide her with notice of adverse credit action.”
Faulkner v. Glickman, 172 F. Supp. 2d 732 (D. Maryland 2001). · cites it 3× “12 C.F.R. § 202.9 (c)(2) provides as follows: *738 Notice of incompleteness.”
Sayers v. Gen. Motors Acceptance Corp., 522 F. Supp. 835 (W.D. Mo. 1981). · cites it 2× “*839 § 1691(dX2) and 12 C.F.R. § 202.9 (e). She is also entitled to punitive damages in the amount of $500 and reasonable attorney’s fees, which will be computed by the Court at a later time.”
Ricciardi v. Ameriquest Mortg. Co., 164 F. App'x 221 (3rd Cir. 2006). · cites it 2× “12 C.F.R. § 202.9 . As defined by regulation, a counteroffer is “an offer to extend credit in a different amount, or on other terms, than the terms requested.”
Show all 60 citing cases →
— 12 C.F.R. § 202.9(a)(l)(i) — 1 case
Diaz v. Paragon Motors of Woodside, Inc., 424 F. Supp. 2d 519 (E.D.N.Y 2006). “1998) (citing 12 CFR § 202.9 (a)(l)(i) (“A creditor shall notify an applicant of action .”
— 12 C.F.R. § 202.9(a)(l)(iv) — 1 case
Diaz v. Paragon Motors of Woodside, Inc., 424 F. Supp. 2d 519 (E.D.N.Y 2006). “1998) (citing 12 CFR § 202.9 (a)(l)(i) (“A creditor shall notify an applicant of action .”
— 12 C.F.R. § 202.9(b)(2) — 1 case
Cherry v. Amoco Oil Co., 481 F. Supp. 727 (N.D. Ga. 1979).
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