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Lack of socialism, I think. In Norway, I believe a bank is legally required to offer you a detailed, reasonable rationale if you're denied for a loan. This is
by koala_man 7y ago
Lack of socialism, I think.
In Norway, I believe a bank is legally required to offer you a detailed, reasonable rationale if you're denied for a loan. This is to empower the consumer to fix the situation, and to avoid unfair discrimination.
This means that the bank can't reject your loan simply for being your first one, or because some black-box AI said no. Essentially you're considered trustworthy until proven otherwise.
Meanwhile, an American bank can probably tell you to get stuffed for any or no reason, meaning that the onus is on you to prove that giving you a loan is in their best interest: i.e. you have to build credit.
- CerebralCerb 7y agoNorwegian who work in finance here. I doubt socialism is the cause. We have different financial regulations here, and I often hear Norwegian regulations are far more friendly to banks than across the pond. It would surprise me greatly if an American bank was allowed to make arbitrary loan decisions. I am only familiar with the Norwegian financial system, but here it is a given that every single loan application that the bank either approves or rejects can stand up to scrutiny. They frequently have to in the case of collection cases (I.E determine if the bank had sufficient information to determine that a debtor could reasonably be expected to repay the debt they were issued).