Which of the following statements regarding applications is correct?

B

The correct answer to this question is A. Applications must be signed to be valid.

Explanation: A) Applications must be signed to be valid: This statement is correct. In general, applications for credit or other financial services must be in writing and signed by the applicant. The signature serves as evidence that the applicant has authorized the creditor to obtain a credit report and consider the application.

B) Creditors may accept oral applications: This statement is not entirely accurate. While some creditors may accept oral applications, the preferred and more common practice is for applications to be in writing and signed by the applicant.

C) Creditors may not develop their own definition for a completed application: This statement is not correct. Creditors may develop their own definition for what constitutes a completed application, as long as they do not engage in discriminatory or unfair practices in doing so.

D) A creditor is not required to attempt to complete incomplete applications: This statement is not correct. Creditors are required to make a reasonable effort to obtain all necessary information to evaluate an application. This may include contacting the applicant to request missing information or documentation.