What does the Equal Credit Opportunity Act do?

This Act (Title VII of the Consumer Credit Protection Act) prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of any rights under the Consumer Credit Protection Act.

What is the purpose of the Equal Credit Opportunity Act quizlet?

Makes it unlawful for any creditor to discriminate against any applicant, based on race, color, religion, national origin, sex, marital status, or age; OR that their income is generated from public assistance programs.

What violates the Equal Credit Opportunity Act?

Consumer Protections Under the ECOA Discouraging you from applying for credit based on race, color, religion, national origin, sex, marital status, age or because you receive public assistance.

Which regulation is Equal Credit Opportunity Act?

Regulation B
The Equal Credit Opportunity Act (ECOA) of 1974, which is implemented by the Board’s Regulation B, applies to all creditors.

Why is equal credit opportunity so important?

The act’s purpose is to prevent lenders from using race, color, sex, religion, or other non-creditworthiness factors when evaluating a loan application, establishing terms of a loan, or any other aspect of a credit transaction.

How do the Equal Credit Opportunity Act & Truth in Lending laws protect consumers?

The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Equal Credit Opportunity Act (ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance.

Which of the following are protected categories under the Equal Credit Opportunity Act quizlet?

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in the granting of credit based on race, color, religion, national origin, sex, marital status, age or receipt of public assistance.

Who enforces the Equal Credit Opportunity Act?

The Federal Trade Commission (FTC)
The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Equal Credit Opportunity Act (ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance.

What are the only three reasons a person can be denied credit according to the Equal Credit Opportunity Act?

prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection …

What do you need to know about the equal credit Opportunity Act?

As part of our work to empower consumers’ financial decision-making, we also want you to know about important consumer rights that protect you. One of these is the law that protects consumers from being discriminated against in the financial marketplace: the Equal Credit Opportunity Act (ECOA).

What do you need to know about ECOA law?

What is ECOA? ECOA is a federal civil rights law that protects you from being discriminated against by lenders, based on any of the following reasons: Receiving money from any public assistance program, such as Social Security Disability Insurance (SSDI) or the Supplemental Nutrition Assistance Program (SNAP)

What should be considered when applying for an ECOA loan?

ECOA Considerations. Thus, they are optional and not required. The only accepted factors that can be used to determine whether or not an individual is approved for a loan are relevant financially related pieces of information such as one’s credit score, income and existing debt load.

How does ECOA affect a spouse’s credit report?

Another aspect of the ECOA allows each spouse in a marriage to have his or her own credit history in his or her own name. That being said, if a borrower has any joint accounts with their spouse, these accounts will appear on both credit reports, so a spouse’s financial behavior can still have a positive or negative impact on an…