Creditors (as that term is defined in Section 202.2(1)) may not make any statements, oral or written, in advertising or otherwise, which would discourage anyone from applying because of sex, marital status, age, race, national origin, or the fact that all or a part of the applicant's income derives from public assistance.
Creditors may not inquire about a spouse or former spouse, except in certain situations. Creditors may inquire where the spouse will be permitted to use the account, will be contractually liable on the account, or where the applicant is relying on the spouse's income as a basis for repayment of the requested credit.
Creditors may also inquire about a spouse or former spouse where the applicant is relying upon alimony or child support income from a former spouse, and where the applicant lives in a community property state. (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas and Washington. Always check with local counsel.)
Creditors may not ask applicants to reveal sex, race, national origin, or religion, except for certain monitoring purposes involving real estate loans. Other restrictions apply to inquiries concerning childbearing and childrearing. See Section 202.5 of Regulation B, reproduced below for illustration.
12 C.F.R. Section 202.5 Rules concerning taking of applications.
(a) Discouraging applications. A creditor shall not make any oral or written statement, in advertising or otherwise, to applicants or prospective applicants that would discourage on a prohibited basis a reasonable person from making or pursuing an application.
(b) General rules concerning requests for information.
(1) Except as provided in paragraphs (c) and (d) of this section, a creditor may request any information in connection with an application (1)
(2) Required collection of information. Notwithstanding paragraphs (c) and (d) of this section, a creditor shall request information for monitoring purposes as required by Section 202.13 for credit secured by the applicant's dwelling. In addition, a creditor may obtain information required by a regulation, order, or agreement issued by, or entered into with, a court or an enforcement agency (including the Attorney General of the United States or a similar state official) to monitor or enforce compliance with the act, this regulation, or other federal or state statute or regulation.
(3) Special purpose credit. A creditor may obtain information that is otherwise restricted to determine eligibility for a special purpose credit program, as provided in Section 202.8 (c) and (d).
(c) Information about a spouse or former spouse.
(1) Except as permitted in this paragraph, a creditor may not request any information concerning the spouse or former spouse of an applicant.
(2) Permissible inquiries. A creditor may request any information concerning an applicant's spouse (or former spouse under paragraph (c)(2)(v) of this section [45 FR 67058, Oct. 9, 1980, as amended at 56 FR 19574, Apr. 29, 1991]) that may be requested about the applicant if:
(i) The spouse will be permitted to use the account;
(ii) The spouse will be contractually liable on the account;
(iii) The applicant is relying on the spouse's income as a basis for repayment of the credit requested;
(iv) The applicant resides in a community property state or property on which the applicant is relying as a basis for repayment of the credit requested is located in such a state; or
(v) The applicant is relying on alimony, child support, or separate maintenance payments from a spouse or former spouse as a basis for repayment of the credit requested.
(3) Other accounts of the applicant. A creditor may request an applicant to list any account upon which the applicant is liable and to provide the name and address in which the account is carried. A creditor may also ask the names in which an applicant has previously received credit.
(d) Other limitations on information requests--
(1) Marital status. If an applicant applies for individual unsecured credit, a creditor shall not inquire about the applicant's marital status unless the applicant resides in a community property state or is relying on property located in such a state as a basis for repayment of the credit requested. If an application is for other than individual unsecured credit, a creditor may inquire about the applicant's marital status, but shall use only the terms married, unmarried, and separated. A creditor may explain that the category unmarried includes single, divorced and widowed persons.
(2) Disclosure about income from alimony, child support, or separate maintenance. A creditor shall not inquire whether income stated in an application is derived from alimony, child support, or separate maintenance payments unless the creditor discloses to the applicant that such income need not be revealed if the applicant does not want the creditor to consider it in determining the applicant's creditworthiness.
(3) Sex. A creditor shall not inquire about the sex of an applicant. An applicant may be requested to designate a title on an application form (such as Ms., Miss, Mr., or Mrs.) if the form discloses that the designation of a title is optional. An application form shall otherwise use only terms that are neutral as to sex.
(4) Childbearing, childrearing. A creditor shall not inquire about birth control practices, intentions concerning the bearing or rearing of children, or capability to bear children. A creditor may inquire about the number and ages of an applicant's dependents or about dependent-related financial obligations or expenditures, provided such information is requested without regard to sex, marital status, or any other prohibited basis.
(5) Race, color, religion, national origin. A creditor shall not inquire about the race, color, religion, or national origin of an applicant or any other person in connection with a credit transaction. A creditor may inquire about an applicant's permanent residence and immigration status.
(e) Written applications. A creditor shall take written applications for the types of credit covered by Section 202.13(a), but need not take written applications for other types of credit.
