59.1-21.21:1 - (Repealed effective October 1, 2010) Prohibited discrimination; notification of action on credit ap...
§ 59.1-21.21:1. (Repealed effective October 1, 2010) Prohibiteddiscrimination; notification of action on credit application; statement ofreasons for adverse action.
A. It shall be unlawful for any creditor to discriminate against anyapplicant, with respect to any aspect of a credit transaction:
1. On the basis of race, color, religion, national origin, sex or maritalstatus, or age (provided the applicant has the capacity to contract);
2. Because all or part of the applicant's income derives from any publicassistance or social services program.
B. It shall not constitute discrimination for purposes of this chapter for acreditor:
1. To make an inquiry of marital status if such inquiry is for the purpose ofascertaining the creditor's rights and remedies applicable to the particularextension of credit and not to discriminate in a determination ofcreditworthiness;
2. To make an inquiry of the applicant's age or of whether the applicant'sincome derives from any public assistance or social services program if suchinquiry is for the purpose of determining the amount and probable continuanceof income levels, credit history, or other pertinent element ofcreditworthiness as provided in regulations of the State CorporationCommission;
3. To use any empirically derived credit system which considers age if suchsystem is demonstrably and statistically sound in accordance with regulationsof the State Corporation Commission, except that in the operation of suchsystem the age of an elderly applicant may not be assigned a negative factoror value; or
4. To make an inquiry or to consider the age of an elderly applicant when theage of such applicant is to be used by the creditor in the extension ofcredit in favor of such applicant.
C. It is not a violation of this section for a creditor to refuse to extendcredit offered pursuant to:
1. Any credit assistance program expressly authorized by law for aneconomically disadvantaged class of persons;
2. Any credit assistance program administered by a nonprofit organization forits members or an economically disadvantaged class of persons; or
3. Any special purpose credit program offered by a profit-making organizationto meet special social needs which meets standards prescribed in regulationsby the State Corporation Commission; if such refusal is required by or madepursuant to such program.
D. 1. Within thirty days (or such longer reasonable time as specified inregulations of the State Corporation Commission for any class of credittransaction) after receipt of a completed application for credit, a creditorshall notify the applicant of its action on the application.
2. Each applicant against whom adverse action is taken shall be entitled to astatement of reasons for such action from the creditor. A creditor satisfiesthis obligation by:
a. Providing statement of reasons in writing as a matter of course toapplicants against whom adverse action is taken; or
b. Giving written notification of adverse action that discloses (i) theapplicant's right to a statement of reasons within thirty days after receiptby the creditor of a request made within sixty days after such notification,and (ii) the identity of the person or office from which such statement maybe obtained. Such statement may be given orally if the written notificationadvises the applicant of his right to have the statement of reasons confirmedin writing on written request.
3. A statement of reasons meets the requirements of this section only if itcontains the specific reasons for the adverse action taken.
4. Where a creditor has been requested by a third party to make a specificextension of credit directly or indirectly to an applicant, the notificationand statement of reasons required by this subsection may be made directly bysuch creditor, or indirectly through the third party, provided in either casethat the identity of the creditor is disclosed.
5. The requirements of subdivision 2, 3, or 4 may be satisfied by verbalstatements or notifications in the case of any creditor who did not act onmore than 150 applications during the calendar year preceding the calendaryear in which the adverse action is taken, as determined under regulations ofthe State Corporation Commission.
(1977, c. 589; 2002, c. 747.)