Victory State Bank: It’s Illegal For A Lender To Deny Seniors Credit Based Solely On Age
STATEN ISLAND, N.Y. -- Credit is an important money management tool for both young and older consumers. Yet the elderly, particularly older women, may find it difficult to get credit.
If you’re an older consumer who has paid with cash all your life, you may find it difficult to open a credit account. That’s because you have “no credit history” of how you paid on credit. If your income has decreased, you may find it harder to get a loan because you have “insufficient income.”
Or, if your spouse dies, you may find creditors trying to close joint accounts. A “joint account” is one for which both spouses applied and signed the credit agreement.
Victory State Bank wants you to know that it is illegal for a lender to deny a senior credit based solely on age.
According to the Federal Trade Commission (http://www.ftc.gov), the federal Equal Credit Opportunity Act (ECOA) states it is unlawful for a creditor to deny you credit or terminate existing credit simply because of your age.
On the other hand, a creditor can consider your age to:
- Favor applicants who are age 62 or older.
- Determine other elements of creditworthiness. For example, a creditor could consider whether you’re close to retirement age and a lower income.
While a creditor cannot take your age directly into account, a creditor may consider age as it relates to certain elements of creditworthiness. If, for example, at the age of 70, you apply for a 30-year mortgage, a lender might be concerned that you may not live to repay the loan.
About Victory State Bank:
VSB Bancorp, Inc. (NASDAQ: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online http://www.victorystatebank.com .
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