The Equal Credit Opportunity Act mandates that lenders must provide a reason for denial within how many days?

The Equal Credit Opportunity Act (ECOA) requires that lenders notify applicants of the action taken on their credit applications within a specific timeframe. If an application is denied, the lender must provide the applicant with a written notice that includes the reasons for the denial. This notice must be sent within 30 days after receiving the application. This timeframe ensures that borrowers are informed in a timely manner, allowing them to understand the reasons behind the decision and, if necessary, take steps to address any issues that may have contributed to the denial.

The requirement for a 30-day notification aligns with the intentions of the ECOA to support fair lending practices and enhance borrower awareness. Other timeframes listed do not align with the provisions set forth in the ECOA regarding notification after a credit denial.