What is the Equal Credit Opportunity Act?

the person Equal Credit Opportunity Act

This act, passed in 1974 and monitered by The Federal Trade Commission, ensures that all consumers are given an equal chance to obtain credit. This doesn�t mean all consumers who apply for credit get it. Factors such as income, expenses, debt, and credit history are considerations for creditworthiness. The ECOA prohibits descrimination upon based on the following :

1. Race

2. Color

3. Religion

4. National Origin

5. Sex

6. Marital Status

7. Age (provided that the applicant has the capacity to enter into a binding contract

8. Receipt of income from any public assistance program

9. Good faith exercise of any rights under the Consumer Protection Act

If you have a credit application denied, the Equal Credit Opportunity Act requires creditors to specify why � if you ask. For example, the creditor must tell you whether you were denied because you have "no credit file" with a credit reporting agency (CRA) or because the CRA says you have "delinquent obligations." The ECOA also requires creditors to consider additional information you might supply about your credit history. You may want to find out why the creditor denied your application before you contact the CRA.

First answer by Chris. Last edit by The person3. Contributor trust: 0 [recommend contributor]. Question popularity: 283 [recommend question]