The Equal Credit Opportunity Act (ECOA) is a United States law that prohibits any creditor to discriminate against any applicant on the basis of race, color, religion, national origin, sex, marital status, age and participation in public assistance program. The law protects consumers against credit discrimination from companies such as banks, retail and department stores, finance companies, credit unions, real estate brokers and credit card companies.
ECOA highlighted the following rights you have as a consumer:
You cannot be discouraged or denied your application for credit based on your race, color, sex, marital status, religion, age, national origin, or recipient of public assistance. However your creditor may inquire your immigration status to determine whether you are allowed to stay in the country until you pay off the debt.?
You cannot be imposed different terms or conditions such as higher interest rates on a loan based on your race, color, sex, marital status, religion, age, national origin, or recipient of public assistance.
You cannot be asked questions about your spouse, unless you are applying for a joint account with your spouse, or if your spouse will be allowed to use the account, or if you depend on your spouse’s income, or if your account is secured by property, or you live in a community property state (including Arizona, California, Idaho, Louisiana, Nevada, Texas, Washington, and Wisconsin).
You cannot be asked about plans for having or raising children. However creditors can ask you about expenses associated with your dependents.
Terms of the loans or whether to grant you credit may not be based on your age, unless you are under 18, or at least 62, or to predict possible drop in future income if you are close to retirement.
Your gender or marital status cannot be used to discount income. For example, a creditor may not assume that a woman will resign to have children.
You have the right to know whether your application was accepted within 30 days after filing a complete application.
You have the right to know why your application was rejected.
If you wish to find out more about the Equal Credit Opportunity Act, please go to the source of this article at the Federal Trade Commission.
