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 are three categories under ECOA on which creditors may not base credit decisions?
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 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 .
What does the Equal Credit Opportunity Act prohibit?
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 are the only three reasons a creditor may deny credit?
National Origin, or Sex — 12 CFR § 1002.6(b)(9)
Except as otherwise permitted or required by law, a creditor shall not consider race, color, religion, national origin, or sex (or an applicant’s or other person’s decision not to provide the information) in any aspect of a credit transaction.
What is a violation of the Fair credit Reporting Act?
Notice violations under the FCRA might occur when: a creditor fails to notify you when it supplies negative credit information to a CRA . a user of credit information (such as a prospective employer or lender) fails to notify you of a negative decision based upon your credit report.
What is Reg Z in lending?
Regulation Z prohibits certain practices relating to payments made to compensate mortgage brokers and other loan originators . The goal of the amendments is to protect consumers in the mortgage market from unfair practices involving compensation paid to loan originators.
What is the 30 day ECOA rule?
The first part of the 30-day rule requires creditors to provide notification of their credit decision within “30 days after receiving a completed application concerning the creditor’s approval of, or counteroffer to, or adverse action on the application .” While this is a mouthful to say, it really isn’t that difficult.
What happens if you are denied credit according to ECOA?
When you’re denied credit, the required notification from the creditor indicates contact information for a particular government agency , which will depend on the type of loan or credit. Submit a complaint to the Consumer Financial Protection Bureau. 5 It will work with the creditor to get an answer for the consumer.
What is prohibited basis under ECOA?
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 ...
Why is the Equal Credit Opportunity Act important?
The purpose of ECOA is to promote the availability of credit to all creditworthy applicants without regard to race , color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract); because all or part of the applicant’s income derives from any public assistance ...
What led to the Equal Credit Opportunity Act?
Why it became the law
ECOA was passed at a time when discrimination against women applying for credit was common . For example, mortgage lenders often discounted a married woman’s income, especially if she was of childbearing age. Things weren’t much better for single women, either.
What is Reg B compliance?
Regulation B prohibits creditors from requesting and collecting specific personal information about an applicant that has no bearing on the applicant’s ability or willingness to repay the credit requested and could be used to discriminate against the applicant. Applicant Characteristics.
Who implemented the Equal Credit Opportunity Act?
The Equal Credit Opportunity Act was signed into law by President Gerald Ford on October 28, 1974. The ECOA prohibits creditors from discrimination on the basis of race, color, religion, national origin, sex, marital status, or age.
How does the Equal Credit Opportunity Act affect property managers?
ECOA affects property managers in same way. The Federal Fair Housing At and its amendments prohibit discrimination in the sale rental or financing of housing based on race, color, religion, national origin, sex, familial status, or disability.
What is the purpose of the Consumer Credit Protection Act?
The purpose of the FCBA is “ to protect the consumer against inaccurate and unfair credit billing and credit card practices .” 46 The law defines and establishes a procedure for resolving billing errors in consumer credit transactions.
