Using An Interpreter To Take A Loan Application

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Question:

An individual called asking if we would take an application for a consumer loan through an interpreter since the applicant does not speak or read English. The interpreter would not be involved in the actual transaction. The potential customer speaks and reads Spanish. We do not have Spanish speaking employees, nor are our loan documents in Spanish.Do we need to accept this application? Can we refuse to accept it? What is our obligation in this situation?

Answer:

Answer by John Burnett:

I think you should accept the application and the assistance. Also, ask the interpreter if he or she will be willing to interpret for the customer your English language disclosures and note.

Refusal to accept the application could be construed as prohibited under Reg. B based on national origin. It would be a reach, but you don't want the aggravation of defending that sort of challenge.

Answer:

Answer by Lucy Griffin:

Considering the refusal to take the application a violation of Regulation B isn't a reach, actually. In this situation, because the bank does not provide translation, the burden is on the customer to understand your English language documents. It sounds like the customer has that covered. Refusal to accept the application would trigger problems of discrimination based on ethnicity and national origin.

First published on BankersOnline.com 2/10/03