Equal Credit Opportunity Act: Your Right to Credit

The Equal Credit Opportunity Act (ECOA) protects consumers from credit discrimination based on sex, race, marital status, religion, national origin, age, or receipt of public assistance. While creditors may ask about these things (except religion) on special situations, they can’t use these factors to determine whether or not you should receive credit.

Other Rights

Aside from prohibiting creditors to discriminate against the above-mentioned factors, you also have the right to know why you are denied credit, and you are entitled to have public assistance considered in the same manner as other income.

Companies Under the Equal Credit Opportunity Act

Basically, everyone that takes part in deciding who gets granted credit, are mandated by this act. These companies and individuals include credit card companies, banks, credit unions, financial institutions, retail stores, department stores, and even real estate brokers who handle financing. This law doesn’t stop at individual consumers, though. It also protects businesses applying for loans.

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