Regulation B

Federal Reserve regulation prohibiting discrimination against consumer credit applicants, and establishing guidelines for collecting and evaluating credit information. Regulation B prohibits creditors from discriminating on the basis of age, sex, race, color, religion, national origin, marital status, or receipt of public assistance. The regulation also requires creditors to give written notification of rejection, a statement of the applicant's rights under the Equal Credit Opportunity Act and a statement listing reasons for rejection, or the applicant has the right to request the reasons. If an applicant was denied credit because of adverse information in a credit bureau report, the applicant is entitled to receive, at no cost, a copy of the bureau report. Creditors who furnish credit information when reporting information on married borrowers must report information in the name of each spouse. See also Credit Bureau; Credit Scoring; Effects Test.