Certified Regulatory Compliance Manager (CRCM) — Question 135

What may a creditor do if an applicant applies for individual unsecured credit?

Answer options

• A. A creditor may never require the signature of another person.
• B. A creditor may ask for the signature of the applicant's spouse if the applicant is not creditworthy.
• C. A creditor may require another signature if the applicant relies on jointly owned property to establish creditworthiness.
• D. A creditor may ask the applicant to withdraw the application if it does not meet the creditor's credit standards.

Correct answer: C

Explanation

The correct answer is C because creditors can require an additional signature when applicants use shared property to support their credit claims. Option A is incorrect as creditors can indeed require additional signatures under certain conditions. Option B is misleading as a creditor may ask for a spouse's signature but not solely based on creditworthiness. Option D is also incorrect; while creditors can set standards, they typically cannot force an applicant to withdraw their application.