Regulation B

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.

RELATED TERMS
  1. Credit Application

    A request for an extension of credit, either orally or in written ...
  2. Age Discrimination In Employment ...

    A federal statute protecting "certain applicants and employees" ...
  3. Equal Credit Opportunity Act - ...

    A regulation created by the U.S. government that states that ...
  4. Equal Employment Opportunity Commission ...

    The agency that is responsible for enforcing federal laws regarding ...
  5. Loan Application Fee

    A fee charged to process an application for a loan, such as a ...
  6. Correction Notice

    A notice indicating that a process or application contains errors ...
Related Articles
  1. Economics

    What is Price Discrimination?

    Price discrimination occurs when a company charges different customers different prices for the same goods or services.
  2. Personal Finance

    Tips To Improve Chances Of A Small Business Loan

    Enhance your small business loan eligibility by keeping these important tips in mind.
  3. Economics

    The Pitfalls Of Financial Regulation

    Regulatory actions usually have lofty intentions that end up with unintended and negative consequences.
  4. Professionals

    8 Things Employers Aren't Allowed To Ask You

    In their eagerness for gainful employment, many people may overlook these improper interview questions.
  5. Credit & Loans

    What Lenders Look at on Your Credit Report

    What do lenders consider when they look at your credit report? It’s a simple question with a complicated answer.
  6. Credit & Loans

    How Lender Overlays Prevent Mortgages

    Loan applications are increasingly being rejected because of lender overlays.
  7. Options & Futures

    Get To Know These Crucial US Options Market Regulations

    How are options regulated in the U.S and which organizations are involved in options market regulations?
  8. Entrepreneurship

    Answer These 7 Questions Before Applying for a Loan For Your Startup

    Learn the seven key questions every budding entrepreneur needs to have answers to before sitting down with a lender to discuss a startup loan.
  9. Home & Auto

    Find a Reverse Mortgage Lender You Can Trust

    Reverse mortgages are a notorious lending market. Follow these steps and the chances are good you’ll find a trustworthy, competent lender.
  10. Entrepreneurship

    5 Things to Do Before Submitting a Loan Request for Your Startup

    Learn the five key steps to securing a small business startup loan, what documents to present, what personal finance items to check and where to apply.
RELATED FAQS
  1. What is the average debt/equity ratio of companies in the electronics sector?

    Learn about the three types of price discrimination, and understand how each can benefit a company in terms of selling its ... Read Answer >>
  2. How do companies use price discrimination?

    Learn about price discrimination, the three different types of price discrimination and how companies use price discrimination ... Read Answer >>
  3. What are the different types of price discrimination and how are they used?

    Understand the difference between the three major types of price discrimination and how each is used in practical business ... Read Answer >>
  4. What profit margin is average for a company in the electronics sector?

    Understand what types of common industries practice price discrimination. Learn about the three types of price discrimination ... Read Answer >>
  5. What factors should I consider when shopping for the best mortgage lender?

    Comparing lenders to obtain the best mortgage loan requires research and willingness to shop around for the best loan to ... Read Answer >>
  6. What impact does government regulation have on the financial services sector?

    Learn about how the financial services industry is affected by government regulation, and the different types of regulations ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center