Prohibition on discrimination based on sex, marital status, race, color, religion, national origin, age, sexual orientation, gender identity, or disability
8 V.S.A. § 10403
in effect10403. Prohibition on discrimination based on sex, marital status, race, color, religion, national origin, age, sexual orientation, gender identity, or disability
(a) Discrimination prohibited. No lending 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 Commissioner 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 lending institution directly for an extension, renewal, or continuation of credit or applies to a lending 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 lending 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 lending institution has received all the information that the lending 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 lending institution shall exercise reasonable diligence in obtaining such information.
(4) “Credit services” means credit cards, personal loans, mortgage loans, and commercial loans.
(5) “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.
(6) “Lending institution” means a Vermont financial institution, Vermont credit union, and any person required to obtain, or exempt from the requirement to obtain, a lender license pursuant to section 2201 of this title.
(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 after reaching a decision on a completed application, a lending 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 lending 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) Lending 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 lending 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; 2025, No. 142 (Adj. Sess.), § 24, eff. July 1, 2026.
Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/section/08/200/10403Fetched: 10/21/2026