Lenders and other creditors must inform rejected credit applicants of the reasons for denial in writing within how many days?

• A. 15
• B. 30
• C. 60
• D. 90

Answer: (B)

The question tests the rule that when a credit application is denied, the lender must inform the applicant in writing within a set time frame. Under the Equal Credit Opportunity Act, a creditor must send an adverse-action notice within 30 days after receiving a completed application. That written notice should explain the reasons for denial if the applicant requests them, and it should tell the applicant how to obtain a copy of the credit report used in the decision (and the contact details of the reporting agency). The 30-day deadline ensures timely, transparent communication so the applicant understands why credit wasn’t granted and can take steps to improve eligibility or reapply.