According to law, how soon must a lender notify a person denied credit?

The correct response is based on the requirements outlined by the Equal Credit Opportunity Act (ECOA). When a lender denies a credit application, they are obligated to inform the applicant of the denial within a specified timeframe. This timeframe is established to ensure transparency and fairness in the lending process.

In the case of a credit denial, the lender must notify the applicant within 30 days. This notification must detail the reasons for the denial or inform the applicant of their right to request this information. This requirement is in place to protect consumers and help them understand why their credit application was not approved, allowing them to take steps to improve their creditworthiness or address any issues.

While other timeframes like 15, 45, or 60 days are stipulated for different consumer rights notifications or lending practices, the specific 30-day requirement for communicating a credit denial is an essential part of the ECOA, designed to foster responsible lending practices and ensure borrowers are treated fairly.