Vermont § 10403 - Prohibition on discrimination based on sex, marital status, race, color, religion, national origin, age, sexual orientation, gender identity, or disability

§ 10403. Prohibition on discrimination based on sex, marital status, race, color, religion, national origin, age, sexual orientation, gender identity, or disability

• (a) Discrimination prohibited. No financial institution shall discriminate against any applicant for credit services
  on the basis of the sex, marital status, race, color, religion, national origin, age,
  sexual orientation, gender identity, or disability of the applicant, provided the
  applicant has the legal capacity to contract. (b) Rulemaking. The Department of Financial Regulation shall adopt rules necessary to carry out the
  provisions of this section. (c) Definitions. As used in this section: (1) “Adverse action” means denial, revocation, or termination of credit services. The
  term does not include a change in the terms of an account expressly agreed to by an
  applicant nor any action or forbearance relating to an account taken in connection
  with inactivity, default, or delinquency as to that account. (2) “Applicant” means any person who applies to a financial institution directly for an
  extension, renewal, or continuation of credit or applies to a financial institution
  indirectly by use of an existing credit plan for an amount exceeding a previously
  established credit limit. (3) “Application” means an oral or written request for an extension of credit that is
  made in accordance with procedures established by a financial institution for the
  type of credit requested. The term does not include the use of an account or line
  of credit to obtain an amount of credit that is within a previously established credit
  limit. A completed application means an application in connection with which a financial
  institution has received all the information that the financial institution regularly
  obtains and considers in evaluating applications for the amount and type of credit
  requested, including credit reports, any additional information requested from the
  applicant, and any approvals or reports by governmental agencies or other persons
  that are necessary to guarantee, insure, or provide security for the credit or collateral.
  The financial institution shall exercise reasonable diligence in obtaining such information. (4) “Credit services” means credit cards, personal loans, mortgage loans, and commercial
  loans. (5) “Financial institutions” means Vermont financial institutions, credit unions, and
  licensed lenders. (6) “Disability” applied to an applicant means a person with a disability as defined in
  21 V.S.A. § 495d(5). As used in this section, an applicant with a disability does not include an alcoholic
  or drug abuser who, by reason of current alcohol or drug use, constitutes an unacceptable
  credit risk. (7) “Person” means a natural person, a corporation, government or governmental subdivision
  or agency, trust, estate, partnership, cooperative, association, or other entity. (d) Notification requirements. (1) Within 30 days of reaching a decision on a completed application, a financial institution
  shall notify the applicant of its decision on the application. (2) Each applicant against whom adverse action is taken shall receive a written statement
  of reasons for such action from the financial institution. (3) For commercial credit only, a statement of reasons meets the requirements of this
  section only if it contains the specific reasons for the adverse action taken and
  cites the specific documentation or business judgment that supports the adverse decision
  on the application. Consumer credit shall be governed by the Equal Credit Opportunity
  Act (15 U.S.C. § 1691 et seq.) and regulations adopted pursuant to the Act. (4) Financial institutions shall be required to maintain a copy of all “statements of
  reasons” and the documentation upon which the decision was based for 24 months after
  the date of issuance. (e) Civil enforcement. A financial institution that discriminates against an applicant in violation of this
  section shall be liable to the applicant for punitive damages, for actual damages
  sustained by the applicant as a result of the discrimination, and for costs and reasonable
  attorney’s fees as determined by the court. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2007, No. 41, § 10; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2013, No. 96 (Adj. Sess.), § 24; 2019, No. 131 (Adj. Sess.), § 8; 2021, No. 105 (Adj. Sess.), § 280, eff. July 1, 2022.)