Maria Gomez applies for a loan to purchase a new condo. Her loan request is denied due to a 45 percent debt-to-income ratio. The institutions policy allows for a maximum debt-to-income ratio of 40 percent. The bank never makes exceptions to this policy. What type of discrimination is possible in this situation?

Question

Maci Buck

Business

2 November, 13:57

Maria Gomez applies for a loan to purchase a new condo. Her loan request is denied due to a 45 percent debt-to-income ratio. The institutions policy allows for a maximum debt-to-income ratio of 40 percent. The bank never makes exceptions to this policy. What type of discrimination is possible in this situation?

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Answers (1)

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Jessie Hardy · Answer 1

The type of discrimination possible can be structural discrimination

Explanation:

Structural discrimination is refers to discrimination that arises from institutional policies. In these cases, some cases directly or indirectly favor some individuals and harm others. Although the policies of the institutions must be fair to all, sometimes affects certain group of people with similar characteristics. This could be the case of Maria, who is being denied credit for having a certain credit condition that does not comply with the institutional policies established by the bank and prevents her from obtaining this financial product.