Quick Answer: What does the Equal Credit Opportunity Act prohibit?

What does the Equal Credit Opportunity Act cover?

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 does the Equal Credit Opportunity Act prevent quizlet?

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in the granting of credit based on race, color, religion, national origin, sex, marital status, age or receipt of public assistance. … It prohibits discrimination in the issuance of credit, including mortgage lending.

What is not a prohibited basis 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.

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What are the restrictions on denying credit?

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’s the purpose of the Equal Credit Opportunity Act?

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 did the Equal Credit Opportunity Act establish?

The Equal Credit Opportunity Act is a federal financial regulation law enacted in 1974. The act prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, or age in credit transactions.

What’s the purpose of the Equal Credit Opportunity Act quizlet?

Makes it unlawful for any creditor to discriminate against any applicant, based on race, color, religion, national origin, sex, marital status, or age; OR that their income is generated from public assistance programs.

What is the motivation or rationale behind the Equal Credit Opportunity Act quizlet?

To promote the availability of consumer credit to all applicants by prohibiting credit decisions based on race, color, religion, national origin, gender, marital status, age.

Which act prohibits discrimination in the extension of consumer credit quizlet?

You just studied 13 terms!

What is prohibited basis?

Prohibited basis means race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); the fact that all or part of the applicant’s income derives from any public assistance program; or the fact that the applicant has in good faith …

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What are prohibited factors?

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.

Which of the following prohibited factors Cannot be used when making credit decisions?

Which of the following prohibited factors Cannot be used when making credit decisions? Prohibited bases: race, color, religion, national origin, sex, marital status, age (provided the applicant has capacity to contract), receipt of public assistance, or exercise of rights under the Consumer Credit Protection Act.

How does the Equal Credit Opportunity Act reduce discrimination?

It prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age or because a person receives public assistance in whole or in part. It also makes it unlawful to discriminate against anyone who has exercised any rights under the Consumer Credit Protection Act.

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 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.