Equal Credit Opportunity Act (ECOA)

The Equal Credit Opportunity Act (ECOA) is a federal law that prohibits discrimination in credit transactions. It was enacted in 1974 to ensure that all consumers have equal access to credit, regardless of race, color, religion, sex, national origin, marital status, age, or disability.

The ECOA applies to all creditors, including banks, credit unions, mortgage lenders, and other financial institutions. It covers all types of credit transactions, including loans, credit cards, and mortgages.

The ECOA prohibits creditors from discriminating against applicants on the basis of any of the protected characteristics listed above. This means that creditors cannot deny credit to an applicant simply because of their race, color, religion, sex, national origin, marital status, age, or disability.

The ECOA also prohibits creditors from asking applicants about their race, color, religion, sex, national origin, marital status, age, or disability, unless the information is necessary to determine the applicant's creditworthiness.

If a creditor violates the ECOA, the applicant may file a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB will investigate the complaint and, if it finds that the creditor has violated the law, it may take action to stop the discrimination and order the creditor to pay damages to the applicant.

The ECOA is an important law that helps to ensure that all consumers have equal access to credit. If you believe that you have been discriminated against by a creditor, you should file a complaint with the CFPB.