What is not considered a prohibited factors under ECOA?
What is not considered a prohibited factors under ECOA?
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 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 is an ECOA violation?
Applicants cannot be judged by factors other than their creditworthiness, which means that it is illegal to deny a credit application or charge higher interest rates or fees on the basis of: Race. Color. Religion.
What are the only three reasons a creditor may deny credit?
The law makes it unlawful for creditors to discriminate against any applicant on the basis of race, religion, color, national origin, marital status, sex, or age.
Which list presents only prohibited bases under ECOA?
There are nine prohibited factors under the ECOA. Most people are familiar with seven of them: gender, race, color, religion, national origin, marital status and age.
What are the protected classes under ECOA?
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 ECOA Regulation B?
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.
What does ECOA require lenders for?
With respect to the loan application process, the ECOA requires lenders to keep you informed of their decisions and to be specific about their reasons for turning down a loan application or charging you a higher interest rate than the best one available at the time your application is accepted.
What is ECOA regulation B?
What can a lender legally discriminate on?
Mortgage Lending Discrimination The Fair Housing Act, another federal law that is relevant to mortgage lending, prohibits lenders from discriminating on the basis of race, religion, color, national origin, sex, familial status, or disability in housing sales or loans.
What are prohibited factors?
Which activities are prohibited under ECOA?
ECOA is a federal statute that prohibits credit grantors from discriminating in the granting of credit based on a prohibited basis, including race, color, religion, national origin, gender, marital status or age (collectively referred to under the regulations governing ECOA as the “Prohibited Basis”).
What is the purpose of the equal credit Opportunity Act?
The Equal Credit Opportunity Act (ECOA) is a regulation created by the U.S. government that aims to give all legal individuals an equal opportunity to apply for loans from financial institutions and other loan granting organizations. The Equal Credit Opportunity Act states that individuals cannot be discriminated…
What is equal credit opportunity disclosure?
Equal Credit Opportunity Act Notice. The federal Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part…
What is a federal equal credit Opportunity Act?
The Equal Credit Opportunity Act, commonly referred to as the ECOA, is a facet of United States law that prohibits most lenders from discriminating on the basis of race, religion, national origin, sex, marital status, age, or income source. The act was enacted in 1974 as a part of the larger Consumer Credit Protection Act (CCPA).
