What categories are protected by ECOA?

Asked by: Dr. Jared Fisher  |  Last update: June 12, 2025
Score: 4.2/5 (64 votes)

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 are the protected groups under ECOA?

The Federal Equal Credit Opportunity Act 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 of the applicant's income derives ...

Which of the following are protected under the ECOA?

Equal Credit Opportunity Act (ECOA) promotes 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); to the fact that all or part of the applicant's income derives from a public ...

What are three categories under ECOA on which creditors may not base credit decisions?

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 types of transactions are covered under ECOA?

Credit transactions and aspects of credit transactions include:
  • Consumer credit.
  • Business credit.
  • Mortgage loans.
  • Refinancing.
  • Open-end credit.
  • Credit applications.
  • Standards of creditworthiness.
  • Denial of credit.

What is ECOA?

35 related questions found

What are the categories 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 are the three types of fair lending discrimination?

Types of Lending Discrimination

Overt evidence of disparate treatment; • Comparative evidence of disparate treatment; and • Evidence of disparate impact.

Does ECOA apply to all creditors?

The Equal Credit Opportunity Act (ECOA), which is implemented by Regulation B, applies to all creditors. When originally enacted, ECOA gave the Federal Reserve Board responsibility for prescribing the implementing regulation.

Which of the following does ECOA apply to?

ECOA prohibits discrimination in all aspects of a credit transaction and applies to any organization that extends credit—including banks, small loan and finance companies, retail stores, credit card companies, and credit unions. It also applies to anyone involved in the decision to grant credit or set credit terms.

What is an example of an ECOA violation?

Imposing unfair terms or conditions on a loan (such as lower loan amount or higher interest rates) based on personal characteristics protected under the ECOA. Asking detailed personal information regarding marital status, such as whether you are widowed or divorced.

What loans does ECOA cover?

ECOA applies to various types of loans including car loans, credit cards, home loans, student loans, and small business loans.

Which of the following must be included in an ECOA adverse action?

Notifications of adverse action are required to be in writing and must include the following contents: Statement of action taken. Name and address of the creditor. Statement of the provisions of section 701(a) of ECOA.

What is a red flag for an Equal Credit Opportunity Act violation?

Look for red flags, such as: Treated differently in person than on the phone or online. Discouraged from applying for credit. Encouraged or told to apply for a type of loan that has less favorable terms (for example, a higher interest rate)

What are the 7 protected groups?

Protected Classes
  • Race.
  • Color.
  • Religion (includes religious dress and grooming practices)
  • Sex/gender (includes pregnancy, childbirth, breastfeeding and/ or related medical conditions)
  • Gender identity, gender expression.
  • Sexual orientation.
  • Marital status.

What are the 9 protected groups?

The nine protected characteristics are:
  • age.
  • disability.
  • gender reassignment.
  • marriage and civil partnership.
  • pregnancy and maternity.
  • race.
  • religion or belief.
  • sex.

Which of the following are protected classes under fhact and ECOA?

Under the Fair Housing Act, they defined a protected class as a number of things and this includes race or color, national origin, religion, sex, familial status, which includes children under 18 living at home, and handicap.

Which of the following is not true concerning ECOA?

Which of the following is not true concerning ECOA? The answer is it requires the disclosure of the APR on all advertisements which contain an interest rate.

What is considered an application under ECOA?

The Equal Credit Opportunity Act (ECOA) via Regulation B Section 202.2 defines application as follows: “Application means an oral or written request for an extension of credit that is made in accordance with procedures established by a creditor for the type of credit requested.

Which of the following is not included as a protected class by the Equal Credit Opportunity Act?

Final answer: Social Security is NOT included as a protected class under the Equal Credit Opportunity Act, making option D the correct answer.

What categories under ECOA on which creditors may not base credit decisions?

Under ECOA, creditors may not make credit decisions based on the following categories: Race, Color,Religion, National Origin, Sex, Marital Status, Age, Receipt of public assistance.

What are the rules of ECOA?

'' Moreover, the statute makes it unlawful for ''any creditor to discriminate against any applicant with respect to any aspect of a credit transaction (1) on the basis of race, color, religion, national origin, sex or marital status, or age (provided the applicant has the capacity to con tract); (2) because all or part ...

What are the four fair lending laws?

Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans.

What is the statute of limitations for ECOA?

Ordinarily, a civil action for compensatory damages under ECOA must be filed no later than two years from the date of occurrence of the violation.

What are the 5 main types of discrimination?

Types of discrimination
  • Grounds for discrimination.
  • Sexual harassment.
  • Victimisation.
  • Disability discrimination.
  • Domestic abuse discrimination.

What are the three laws created to stop lending discrimination?

Today, three federal laws offer protection against such discrimination: The Fair Housing Act (FHA)1. The Equal Credit Opportunity Act (ECOA)2. The Community Reinvestment Act (CRA)3.