EthicsQuestion 297 of 400
A loan officer discourages a qualified applicant from applying after learning the applicant is 68 years old, saying 'a loan probably isn't right for someone your age.' This is:
a.Permissible, because age affects repayment risk
b.Permissible, if the officer is polite
c.Only a customer-service issue, not a legal one
d.Prohibited discouragement on the basis of age under ECOA
Explanation
Actively discouraging a qualified applicant from applying because of age is prohibited discrimination under ECOA, which forbids discouragement on any prohibited basis. Age may not be used to deter a qualified applicant, courtesy does not cure the violation, and it is a legal violation, not merely a service lapse.
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