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R e s e r v e Ba n k DALLAS. TEXAS of Dallas 75222 C i r c u l a r No. 76-52 A p r il 6, 1976 American Revolution Bicentennial REGULATION B— EQUAL CREDIT OPPORTUNITY ACT I n t e r p r e t a t i o n P e r m i tti n g M odification of th e Equal C r e d i t O p p o r t u n i t y N otice P u r s u a n t to S ta te Law TO ALL MEMBER BANKS AND OTHERS CONCERNED IN THE ELEVENTH FEDERAL RESERVE DISTRICT: On M arch 23, 1976, th e B o a r d of G o v e r n o r s o f th e F e d e r a l R e s e r v e S y ste m p u b l i s h e d a n i n t e r p r e t a t i o n of its R e g u la tio n B u n d e r th e E qual C r e d i t O p p o r t u n i t y A c t. T h e i n t e r p r e t a t i o n , w h ic h is p r i n t e d on th e r e v e r s e of t h i s c i r c u l a r , p e r m i t s c r e d i t o r s to m o dify a p r e s c r i b e d g e n e r a l n o tic e of r i g h t s u n d e r th e A ct w ith a r e f e r e n c e to a s i m i l a r S ta te law a n d th e n am e a n d a d d r e s s of t h e r e l e v a n t S ta te e n f o r c e m e n t a g e n c y . T h e i n t e r p r e t a t i o n i n c l u d e s a n e x a m p le of th e form th e m o d ified n o tic e m ig h t ta k e . O hio a n d Utah c u r r e n t l y h a v e laws p r o h i b i t i n g d i s c r i m i n a t i o n in c r e d i t t r a n s a c t i o n s s i m i l a r to th e F e d e r a l s t a t u t e , a n d o t h e r s ta t e s in te n d to a d o p t s u c h e q u a l c r e d i t o p p o r t u n i t y la w s . A n y q u e s t i o n s r e g a r d i n g R e g u la tio n B o r th e Equal C r e d i t O p p o r t u n i t y A ct s h o u ld b e d i r e c t e d to R i c h a r d West of o u r R e g u l a ti o n s D e p a r tm e n t a t (214) 651-6169. A d d itio n a l c o p i e s of R e g u la tio n B o r t h i s i n t e r p r e t a t i o n w ill b e f u r n i s h e d u p o n r e q u e s t to t h e S e c r e t a r y ' s Office of t h i s B a n k . S in ce rely , T . W. P la n t F i r s t V ice P r e s i d e n t This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM EQUAL CREDIT OPPORTUNITY INTERPRETATION OF REGULATION B Section 2 0 2.4 (d ) of Regulation B requires creditors to print an Equal Credit O pportunity Act notice on their application form s o r to pro vide this notice on a separate sheet of paper mailed or delivered to applicants. The purpose of this requirem ent is to alert the public to the existence o f the Act. T he Board has been asked w hether section 2 0 2 .4 (d ) may be interpreted to perm it creditors to alter o r add to the notice required by Regula tion B in order to com ply with requirem ents imposed u nd er State Equal Credit laws. T he Board believes that com bining the notices re quired by State and Federal Equal Credit laws is a practical and economical approach. T he Board does not believe that com bining these notices will affect the educational value of the notice required by Regulation B. T h e interpretation states that where State law or regulation requires creditors in those States to refer to a State E qual Credit law a n d / o r a State enforcem ent agency, creditors may modify a n d / o r add to the notice which ap pears in section 2 0 2 .4 ( d ) ( 1 ) of Regulation B for the purpose of complying with State requirements. 202.001 M O D IF IC A T IO N O F E Q U A L C R E D IT O P P O R T U N IT Y A C T N O T IC E P U R S U A N T T O S T A T E LAW. (a ) Section 2 0 2 .4 (d ) (1 ) requires creditors to provide applicants with a notice explaining the A ct’s general rule prohibiting discrimination in credit on the basis of sex o r m arital status. This 3-22-76 notice contains a specific reference to the “ Federal Equal Credit O pportunity A ct” and to the “ F ed eral agency” responsible for enforcing the Act. (b) Certain States have adopted, o r intend to adopt, statutes prohibiting discrimination in credit that are similar to the Federal law. In some cases, State law o r regulation requires that creditors provide applicants with a notice regarding a State Equal Credit law. The Board has been asked w h e th e r th e s ta te m e n t p re s c rib e d by se c tio n 2 0 2 .4 ( d ) ( 1 ) may be modified to include a refer ence to a State law and enforcem ent agency immediately following the reference to the Fed eral law an agency. (c) In these circumstances, a creditor may add to o r modify the notice prescribed in section 2 0 2 .4 (d ) (1 ) to refer to the relevant State law a n d /o r to provide the nam e and address of the appropriate State enforcem ent agency. This m odi fication may take the following form : T he Federal Equal Credit O pportunity Act and the (insert the nam e of the State law) prohibit creditors from discriminating against credit applicants on the basis of sex o r m ari tal status. T he Federal agency which adm in isters com pliance with the Federal Act con cerning this (insert appropriate description — bank, store, etc.) is (nam e and address of the appropriate Federal ag e n cy ). T he State agency which administers com pliance with the State law is (insert nam e of the State agency).
@FedFRASER