Vermont Revises Rules Regarding Non-Discrimination in Financial Services
by Robert Harrison, J.D.
November 5, 2015 Vermont Reg. B-2015-01 implements 8 V.S.A. § 10403 which prohibits discrimination by financial service providers based on sex, marital status, race, color, religion, national origin, age, sexual orientation, gender identity, or handicapping condition.
The revised rule focuses on the notice that is required when adverse action is taken by a financial institution against an applicant. When adverse action is taken, the financial institution is required to provide the applicant with a written statement of reasons for the action; the written statement of reasons must be received by the applicant and a disclosure of the right to a statement of reasons is not a valid substitute that the financial institution may provide. Regardless of whether or not the applicant requests a statement of reasons, the financial institution must always provide one to the applicant when adverse action is taken.
For commercial credit transactions, the statement of reasons must contain the specific reasons for the adverse action and must cite documentation or business judgment that supports the adverse action.
Reg.B-2015-01 is effective immediately and supersedes and replaces Reg. B-2014-03.
About the Author
Robert Harrison, J.D. is a Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of Boston University and earned his Juris Doctor at the Boston University School of Law. Robert is admitted to the Bar in Massachusetts. He can be reached at robert.harrison@bankersadvisory.com
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