Lenders and other creditors must inform all rejected credit applicants of the reasons for denying or terminating credit. Notice must be given in writing within how many days?

• A. 15 days
• B. 30 days
• C. 45 days
• D. 60 days

Answer: (B)

Under the Equal Credit Opportunity Act, when credit is denied or terminated, the lender must provide a written notice of the action taken, including the reasons, within thirty days after receiving a completed application. This prompt notice ensures applicants aren’t left in the dark about why they were rejected and can take steps to address the factors involved. Timeframes like fifteen days would be too short for a proper consideration, while forty-five or sixty days would unnecessarily delay crucial information, so thirty days is the standard.