Glossary

What is Regulation B (Reg B)?

Regulation B is the rule (12 CFR Part 1002) that implements the Equal Credit Opportunity Act (ECOA). It prohibits credit discrimination on prohibited bases and sets requirements for taking applications, providing adverse action notices, and retaining credit records — generally for 25 months for consumer credit.

What Reg B covers

Reg B governs the full credit decision: nondiscrimination on prohibited bases, rules for requesting information, adverse action notification, and recordkeeping. It applies to creditors across the lending spectrum, including many non-bank lenders.

Record retention is a frequently missed obligation — for consumer credit, application records generally must be retained for 25 months.

Why it matters for AI-assisted decisions

When models or automated rules contribute to a decision, the lender still must be able to state specific, accurate reasons and demonstrate the decision was not made on a prohibited basis. That requires an auditable record of the inputs and logic, not just an output.

How Hadrian operationalizes Reg B

Hadrian records each decision with its evidence, enforces a 25-month retention policy on the relevant records, and produces adverse action artifacts on genuine denials — keeping the evidence an examiner would ask for in one place.

FAQ

Regulation B — common questions

How long must credit records be retained under Reg B?

For consumer credit, application records generally must be retained for 25 months. Business credit has different rules.

Does Reg B apply to non-bank lenders?

ECOA/Reg B apply broadly to creditors, including many non-bank lenders. Scope depends on the credit product and applicant type.

ECOA Adverse Action Notice

The institution around the intelligence

See Hadrian run your case lifecycle — intake to close, every decision audited.

Governance-native case processing for lenders and regulated teams.

Book a live demo