What is 'Regulation B'
Regulation B is a regulation intended to prevent discrimination against applicants for consumer credit. Regulation B outlines the rules that lenders must adhere to when obtaining and processing credit information. Lenders are prohibited from discrimination on the basis of age, gender, ethnicity, nationality, marital status or the receipt of public assistance.
BREAKING DOWN 'Regulation B'
Regulation B also mandates that lenders provide a written notice of rejection to failed applicants. The notice must explain why the applicant was rejected, or else give instructions for how the applicant can request this information. The spouses of married applicants who are rejected also have the same right to this information.