Independent Banker - February 2018 - 68

Risks & Rules
COMPLIANCE CORNER
Taking adverse action
How to provide meaningful feedback to customers while meeting
compliance requirements.
By Mary Thorson Wright
C
ommunity bankers make
decisions every day.
Among them are whether
the bank should accept
or deny a request for
credit, and whether it must take an
adverse action on an existing account.
To strike a balance that benefits both
the bank and its customers, a creditor
considers many factors, including
the financial situation of the credit
applicant(s), the characteristics of the
credit request or account at hand, and
the need for the bank to meet regulatory
requirements and manage risk.
When a credit application must
be denied, or when adverse action
is required on an existing account
(collectively, credit applications),
what should the creditor tell the
applicant(s) or borrower(s) to provide
meaningful feedback and meet compliance
requirements?
The adverse action process
The Equal Credit Opportunity Act
(ECOA) (Regulation B) (Section 1009)
guides compliance for the process to
take adverse action and give notice.
Generally, a creditor must notify
an applicant of action taken on the
applicant's request for credit within
68 ICBA Independent Banker February 2018
30 days after receiving a completed
application. Notification of adverse
action taken on an existing account
must also be made within 30 days.
The notice of adverse action must
be in writing and contain certain
information, including the name and
address of the creditor, the type of
action taken and an ECOA notice
with the identity of the federal agency
responsible for enforcing compliance
with the ECOA for that creditor.
Reasons for credit denial
To complete the notice, the creditor
must either provide the applicant

Independent Banker - February 2018

Table of Contents for the Digital Edition of Independent Banker - February 2018

Table of Contents
Independent Banker - February 2018 - Intro
Independent Banker - February 2018 - Cover1
Independent Banker - February 2018 - Cover2
Independent Banker - February 2018 - Table of Contents
Independent Banker - February 2018 - 2
Independent Banker - February 2018 - 3
Independent Banker - February 2018 - 4
Independent Banker - February 2018 - 5
Independent Banker - February 2018 - 6
Independent Banker - February 2018 - 7
Independent Banker - February 2018 - 8
Independent Banker - February 2018 - 9
Independent Banker - February 2018 - 10
Independent Banker - February 2018 - 11
Independent Banker - February 2018 - 12
Independent Banker - February 2018 - 13
Independent Banker - February 2018 - 14
Independent Banker - February 2018 - 15
Independent Banker - February 2018 - 16
Independent Banker - February 2018 - 17
Independent Banker - February 2018 - 18
Independent Banker - February 2018 - 19
Independent Banker - February 2018 - 20
Independent Banker - February 2018 - 21
Independent Banker - February 2018 - 22
Independent Banker - February 2018 - 23
Independent Banker - February 2018 - 24
Independent Banker - February 2018 - 25
Independent Banker - February 2018 - 26
Independent Banker - February 2018 - 27
Independent Banker - February 2018 - 28
Independent Banker - February 2018 - 29
Independent Banker - February 2018 - 30
Independent Banker - February 2018 - 31
Independent Banker - February 2018 - 32
Independent Banker - February 2018 - 33
Independent Banker - February 2018 - 34
Independent Banker - February 2018 - 35
Independent Banker - February 2018 - 36
Independent Banker - February 2018 - 37
Independent Banker - February 2018 - 38
Independent Banker - February 2018 - 39
Independent Banker - February 2018 - 40
Independent Banker - February 2018 - 41
Independent Banker - February 2018 - 42
Independent Banker - February 2018 - 43
Independent Banker - February 2018 - 44
Independent Banker - February 2018 - 45
Independent Banker - February 2018 - 46
Independent Banker - February 2018 - 47
Independent Banker - February 2018 - 48
Independent Banker - February 2018 - 49
Independent Banker - February 2018 - 50
Independent Banker - February 2018 - 51
Independent Banker - February 2018 - 52
Independent Banker - February 2018 - 53
Independent Banker - February 2018 - 54
Independent Banker - February 2018 - 55
Independent Banker - February 2018 - 56
Independent Banker - February 2018 - 57
Independent Banker - February 2018 - 58
Independent Banker - February 2018 - 59
Independent Banker - February 2018 - 60
Independent Banker - February 2018 - 61
Independent Banker - February 2018 - 62
Independent Banker - February 2018 - 63
Independent Banker - February 2018 - 64
Independent Banker - February 2018 - 65
Independent Banker - February 2018 - 66
Independent Banker - February 2018 - 67
Independent Banker - February 2018 - 68
Independent Banker - February 2018 - 69
Independent Banker - February 2018 - 70
Independent Banker - February 2018 - 71
Independent Banker - February 2018 - 72
Independent Banker - February 2018 - 73
Independent Banker - February 2018 - 74
Independent Banker - February 2018 - 75
Independent Banker - February 2018 - 76
Independent Banker - February 2018 - 77
Independent Banker - February 2018 - 78
Independent Banker - February 2018 - 79
Independent Banker - February 2018 - 80
Independent Banker - February 2018 - 81
Independent Banker - February 2018 - 82
Independent Banker - February 2018 - 83
Independent Banker - February 2018 - 84
Independent Banker - February 2018 - Cover3
Independent Banker - February 2018 - Cover4
https://www.nxtbook.com/mspc/independentbanker/september2024
https://www.nxtbook.com/mspc/independentbanker/august2024
https://www.nxtbook.com/mspc/independentbanker/july2024
https://www.nxtbook.com/mspc/independentbanker/june2024
https://www.nxtbook.com/mspc/independentbanker/may2024
https://www.nxtbook.com/mspc/independentbanker/april2024
https://www.nxtbook.com/mspc/independentbanker/march2024
https://www.nxtbook.com/mspc/independentbanker/february2024
https://www.nxtbook.com/mspc/independentbanker/january2024
https://www.nxtbook.com/mspc/independentbanker/december2023
https://www.nxtbook.com/mspc/independentbanker/november2023
https://www.nxtbook.com/mspc/independentbanker/october2023
https://www.nxtbook.com/mspc/independentbanker/september2023
https://www.nxtbook.com/mspc/independentbanker/august2023
https://www.nxtbook.com/mspc/independentbanker/july2023
https://www.nxtbook.com/mspc/independentbanker/june2023
https://www.nxtbook.com/mspc/independentbanker/may2023
https://www.nxtbook.com/mspc/independentbanker/april2023
https://www.nxtbook.com/mspc/independentbanker/march2023
https://www.nxtbook.com/mspc/independentbanker/february2023
https://www.nxtbook.com/mspc/independentbanker/january2023
https://www.nxtbook.com/mspc/independentbanker/december2022
https://www.nxtbook.com/mspc/independentbanker/november2022
https://www.nxtbook.com/mspc/independentbanker/october2022
https://www.nxtbook.com/mspc/independentbanker/september2022
https://www.nxtbook.com/mspc/independentbanker/august2022
https://www.nxtbook.com/mspc/independentbanker/july2022
https://www.nxtbook.com/mspc/independentbanker/june2022
https://www.nxtbook.com/mspc/independentbanker/may2022
https://www.nxtbook.com/mspc/independentbanker/april2022
https://www.nxtbook.com/mspc/independentbanker/march2022
https://www.nxtbook.com/mspc/independentbanker/february2022
https://www.nxtbook.com/mspc/independentbanker/january2022
https://www.nxtbook.com/mspc/independentbanker/december2021
https://www.nxtbook.com/mspc/independentbanker/november2021
https://www.nxtbook.com/mspc/independentbanker/october2021
https://www.nxtbook.com/mspc/independentbanker/september2021
https://www.nxtbook.com/mspc/independentbanker/august2021
https://www.nxtbook.com/mspc/independentbanker/july2021
https://www.nxtbook.com/mspc/independentbanker/june2021
https://www.nxtbook.com/mspc/independentbanker/may2021
https://www.nxtbook.com/mspc/independentbanker/april2021
https://www.nxtbook.com/mspc/independentbanker/march2021
https://www.nxtbook.com/mspc/independentbanker/february2021
https://www.nxtbook.com/mspc/independentbanker/january2021
https://www.nxtbook.com/mspc/independentbanker/december2020
https://www.nxtbook.com/mspc/independentbanker/november2020
https://www.nxtbook.com/mspc/independentbanker/october2020
https://www.nxtbook.com/mspc/independentbanker/september2020
https://www.nxtbook.com/mspc/independentbanker/august2020
https://www.nxtbook.com/mspc/independentbanker/july2020
https://www.nxtbook.com/mspc/independentbanker/june2020
https://www.nxtbook.com/mspc/independentbanker/may2020
https://www.nxtbook.com/mspc/independentbanker/april2020
https://www.nxtbook.com/mspc/independentbanker/march2020
https://www.nxtbook.com/mspc/independentbanker/february2020
https://www.nxtbook.com/mspc/independentbanker/january2020
https://www.nxtbook.com/mspc/independentbanker/december2019
https://www.nxtbook.com/mspc/independentbanker/november2019
https://www.nxtbook.com/mspc/independentbanker/october2019
https://www.nxtbook.com/mspc/independentbanker/september2019
https://www.nxtbook.com/mspc/independentbanker/august2019
https://www.nxtbook.com/mspc/independentbanker/july2019
https://www.nxtbook.com/mspc/independentbanker/june2019
https://www.nxtbook.com/mspc/independentbanker/may2019
https://www.nxtbook.com/mspc/independentbanker/april2019
https://www.nxtbook.com/mspc/independentbanker/march2019
https://www.nxtbook.com/mspc/independentbanker/february2019
https://www.nxtbook.com/mspc/independentbanker/january2019
https://www.nxtbook.com/mspc/independentbanker/december2018
https://www.nxtbook.com/mspc/independentbanker/november2018
https://www.nxtbook.com/mspc/independentbanker/october2018
https://www.nxtbook.com/mspc/independentbanker/september2018
https://www.nxtbook.com/mspc/independentbanker/august2018
https://www.nxtbook.com/mspc/independentbanker/july2018
https://www.nxtbook.com/mspc/independentbanker/june2018
https://www.nxtbook.com/mspc/independentbanker/may2018
https://www.nxtbook.com/mspc/independentbanker/april2018
https://www.nxtbook.com/mspc/independentbanker/march2018
https://www.nxtbook.com/mspc/independentbanker/february2018
https://www.nxtbook.com/mspc/independentbanker/january2018
https://www.nxtbook.com/mspc/independentbanker/december2017
https://www.nxtbook.com/mspc/independentbanker/november2017
https://www.nxtbook.com/mspc/independentbanker/october2017
https://www.nxtbook.com/mspc/independentbanker/september2017
https://www.nxtbook.com/mspc/independentbanker/august2017
https://www.nxtbook.com/mspc/independentbanker/july2017
https://www.nxtbook.com/mspc/independentbanker/june2017
https://www.nxtbook.com/mspc/independentbanker/may2017
https://www.nxtbook.com/mspc/independentbanker/april2017
https://www.nxtbookmedia.com