Which of the following is considered discriminatory under ECOA Regulation B?

Asked by: Jaclyn Hagenes  |  Last update: April 12, 2026
Score: 4.4/5 (20 votes)

Regulation B protects consumers and prohibits lenders from discriminating based on age, gender, ethnicity, nationality, or marital status. Reg B mandates that lenders provide explanations to rejected applicants within 30 days of receiving their completed applications.

What is prohibited under ECOA and Regulation B?

Regulation B prohibits creditors from requesting and collecting specific personal information about an applicant that has no bearing on the applicant's ability or willingness to repay the credit requested and could be used to discriminate against the applicant.

Which of the following is an example of prohibited discrimination 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 type of discrimination does the ECOA address?

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 considered a prohibited basis in both the ECOA and the Fair Housing Act?

Redlining may violate both the FHAct and the ECOA.

Fair Lending: Regulation B (ECOA) | Jay Get It

40 related questions found

Which of the following is considered discrimination under ECOA Regulation B?

Regulation B protects consumers and prohibits lenders from discriminating based on age, gender, ethnicity, nationality, or marital status. Reg B mandates that lenders provide explanations to rejected applicants within 30 days of receiving their completed applications.

Which of the following is a prohibited discriminatory act?

Under the laws enforced by EEOC, it is illegal to discriminate against someone (applicant or employee) because of that person's race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age (40 or older), disability or genetic information.

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 is overt discrimination under ECOA?

Overt evidence of discrimination exists when a lender openly discriminates on a prohibited basis. Example. A lender offers a credit card with a limit of up to $750 for applicants age 21–30 and $1,500 for applicants over 30. This policy violates the ECOA's prohibition on discrimination on the basis of age.

What does the ECOA and Regulation B apply to?

Regulation B, issued by the CFPB to implement ECOA, applies to all persons who are creditors, meaning persons who, in the ordinary course of business, regularly participate in credit decisions, set the terms of credit, or refer applicants to creditors.

What are the three categories under ECOA?

There are three different types of discrimination recognized under the Equal Credit Opportunity Act (ECOA): Overt discrimination, disparate treatment, and disparate impact. It is illegal for creditors to discriminate against people in any of these ways at any point in the lending process.

Which of the following is not considered one of the types of discrimination?

D) Supervisor/Employee discrimination is not a commonly recognized type of discrimination under federal laws that prohibit racial, gender, and religious discrimination in the workplace.

What is an example of discriminatory act?

This may include being refused a job, being dismissed from employment, being denied training opportunities or being harassed at work. It is not discrimination if a person's criminal record means that he or she is unable to perform the inherent requirements of a particular job.

What does ECOA code B mean?

A: Authorized user - A joint account where the borrower is an authorized user, but has no contractual responsibility. I: Individual account - An account solely for this borrower. B: Borrower's account - An account solely for the borrower.

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 three types of fair lending discrimination?

Understanding the 3 Types of Fair Lending Discrimination
  • Overt Discrimination. ...
  • Disparate Treatment. ...
  • Disparate Impact. ...
  • Conclusion.

What is considered discrimination under ECOA Regulation B?

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 ...

Which of the following would be considered discrimination under regulation B?

ECOA makes it “unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction,” on several enumerated bases, including “on the basis of . . . sex . . . ” Likewise, Regulation B prohibits a creditor from discriminating against an applicant on a prohibited basis ( ...

What are some examples of overt discrimination?

Examples of overt discrimination include:
  • Physically assaulting another person based on his or her race, religion or sexual orientation.
  • Perpetrating verbal or sexual harassment against a female colleague to demean her in the workplace.
  • Vandalizing property belonging to a member of a minority group.

What is the most common Reg B violation?

We recommend that every financial institution take a couple minutes to review the "most frequently cited Regulation B violations" in order to compare their existing Fair Lending compliance management system: Common Violation #1: Discrimination on a prohibited basis in a credit transaction.

Which of the following is a prohibited basis under ECOA?

Answer: 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.

What questions are prohibited by ECOA?

We recommend that you avoid asking applicants about personal characteristics that are protected by law, such as race, color, religion, sex, national origin or age.

Which of the following prohibits discrimination?

Title VII of the Civil Rights Act, as amended, protects employees and job applicants from employment discrimination based on race, color, religion, sex and national origin.

What are the prohibits of discrimination?

India Code: Section Details. (1) There shall be no discrimination in an establishment or any unit thereof among employees on the ground of gender in matters relating to wages by the same employer, in respect of the same work or work of a similar nature done by any employee.

What is an example of a discrimination policy?

We shall not discriminate and will not discriminate in employment, recruitment, Board membership, advertisements for employment, compensation, termination, upgrading, promotions, and other conditions of employment against any employee or job applicant on the basis of race, color, religion (creed), gender, gender ...