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.

How does the Equal Credit Opportunity Act guarantee fairness 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. You just studied 16 terms!

Is the Equal Credit Opportunity Act a fair lending law?

The federal fair lending laws—the Equal Credit Opportunity Act and the Fair Housing Act—prohibit discrimination in credit transactions, including transactions related to residential real estate.

What is the purpose of the ECOA?

The purpose of ECOA is to promote the availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract); because all or part of the applicant’s income derives from any public assistance …

What are unfair lending practices?

For example, the following actions can constitute unfair lending practices: taking advantage of an unsophisticated borrower. financing excessive points and fees (an excessive cost of credit), and. engaging in unfair, fraudulent, or deceptive conduct at any time during the loan origination process.

What did the equal credit Opportunity Act do?

The Equal Credit Opportunity Act. The Equal Credit Opportunity Act [ECOA], 15 U.S.C. 1691 et seq. 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,…

What do you need to know about ECOA law?

What is ECOA? ECOA is a federal civil rights law that protects you from being discriminated against by lenders, based on any of the following reasons: Receiving money from any public assistance program, such as Social Security Disability Insurance (SSDI) or the Supplemental Nutrition Assistance Program (SNAP)

Is the Consumer Financial Protection Bureau part of ECOA?

Read the Justice Department’s 2016 Annual Report to Congress. The Consumer Financial Protection Bureau has issued regulations under ECOA. These regulations, known as Regulation B, provide the substantive and procedural framework for fair lending.

Why was ECOA created before the CFPB?

Before the CFPB opened its doors in 2011, the Federal Reserve Board had the job of writing rules to implement ECOA. These rules are written to make sure that consumers are protected and that lenders know how to avoid discrimination in lending.