Fair Lending & Loan Marketing

Answered by:

Question:

Does the Fair Lending Act limit the ability of a bank to use age as a targeting tool in direct marketing for loans?

Answer:

Reg B and fair lending prevent discrimination on the basis of age, so you can restrict it to those of the age to contract, but you shouldn't select "only those between 18 and 22" for a particular product. Why wouldn't someone who is 23, 43 or 63 qualify? This could be hard to explain in front of your examiner or a jury of your peers, who will be customers who resent bankers in many cases.

First published on BankersOnline.com 4/19/10