Which of the following are protected under the ECOA?

Asked by: Joey Okuneva  |  Last update: March 27, 2025
Score: 4.2/5 (46 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 is protected under ECOA?

The Equal Credit Opportunity Act (ECOA) and its implementing regulations, referred to as Regulation B, ensure that creditors do not discriminate against any applicant on the basis of race, color, religion, national origin, sex, marital status, or age.

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.

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 a protected class under ECOA?

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

What is ECOA?

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What are the 14 protected categories?

The protected classes include: age, ancestry, color, disability, ethnicity, gender, gender identity or expression, genetic information, HIV/AIDS status, military status, national origin, pregnancy, race, religion, sex, sexual orientation, or veteran status, or any other bases under the law.

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.

Who is not protected under the Fair Housing Act?

The Fair Housing Act affords no protections to individuals with or without disabilities who present a direct threat to the persons or property of others.

What are some of the prohibited factors covered under ECOA Fhact?

  • race or color.
  • national origin.
  • religion.
  • sex.
  • marital status.
  • age.*
  • applicant's receipt of income from a public assistance program.
  • applicant's exercise, in good faith, of any right under the Consumer Credit Protection Act.

What are the protected classes under the FCRA?

Negative Information Based on Discrimination

The FCRA prohibits the inclusion of negative information on the basis of race, color, national origin, sex, or religion. Any discriminatory reporting practices violate the law.

What types of transactions are covered under ECOA?

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit transaction. It applies to any extension of credit, including extensions of credit to small businesses, corporations, partnerships, and trusts.

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 activities are prohibited under ECOA?

  • Discriminatory Credit Practices Defined. ECOA prohibits discrimination in any aspect of a credit transaction. ...
  • Applicant Marital Status. ...
  • Applicant Age. ...
  • Income Consideration. ...
  • Redlining. ...
  • Indirect Lending.

What is the ECOA coverage?

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 types of loans does ECOA cover?

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

What information must be included in an adverse action notice?

The range of possible credit scores; All the key factors that adversely affected the credit score22; The date on which the credit score was created; and. The name of the person or entity providing the credit score or the information upon which score was created.

Which of the following is a protected class under the 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 is protected under FHAct and ECOA?

Under the ECOA, it is unlawful for a lender to discriminate on a prohibited basis in any aspect of a credit transaction, and under both the ECOA and the FHAct, it is unlawful for a lender to discriminate on a prohibited basis in a residential real-estate-related transaction.

What does ECOA protect borrowers based on?

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 ...

Which of the following is not protected by the Fair Housing Act?

Among the protected classes are race, color, national origin, religion, sex, familial status, and handicap. However, sexual orientation is not explicitly listed as a protected class under the Fair Housing Act.

What is protected under the Fair Employment and Housing Act?

The Fair Employment and Housing Act (California Government Code Section 12900-12951 & 12927-12928 & 12955 - 12956.1 & 12960-12976) provides protection from harassment or discrimination in employment because of: age (40 and over), ancestry, color, creed, denial of family and medical care leave, disability (mental and ...

Which classification is not protected under federal fair housing law?

The protected classes under Federal Fair housing are race, color, sex, religion, national origin, familial status, and disability. Familial status includes a pregnant woman. Marital status is NOT included.

What is the ECOA rule?

'' 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 questions should you avoid on ECOA?

Your marital status cannot be used against you when evaluating your credit application. Any questions about your race, ethnicity and gender cannot be used as a reason to approve or deny your credit application. Creditors have to provide equal information to all borrowers throughout the entire transaction.

What is a disparate impact under ECOA?

Disparate treatment occurs when a creditor treats an applicant differently based on a prohibited basis such as race or national origin.