Notice of adverse action under ECOA must be provided within how many days?

Notice of adverse action under ECOA must be provided within how many days?

• A. 5 days
• B. 10 days
• C. 30 days
• D. 60 days

Answer: (C)

The key idea is the timing of ECOA adverse-action notices. Under Regulation B, a creditor must send an adverse-action notice within 30 days after receiving a completed application or within 30 days after taking adverse action on an existing credit relationship. This 30-day window ensures the applicant receives timely information about the decision and, if applicable, the reasons behind it. The clock starts only after the application is complete; if the application is incomplete, the notice clock doesn’t begin until a complete application is received. Shorter timeframes like five or ten days aren’t compliant, and extending to sixty days would delay important notification. Here, thirty days is the required period.

The key idea is the timing of ECOA adverse-action notices. Under Regulation B, a creditor must send an adverse-action notice within 30 days after receiving a completed application or within 30 days after taking adverse action on an existing credit relationship. This 30-day window ensures the applicant receives timely information about the decision and, if applicable, the reasons behind it. The clock starts only after the application is complete; if the application is incomplete, the notice clock doesn’t begin until a complete application is received. Shorter timeframes like five or ten days aren’t compliant, and extending to sixty days would delay important notification. Here, thirty days is the required period.