Which of the following prohibited basis groups fall only under the Equal Credit Opportunity Act?

Asked by: Bell Kessler PhD  |  Last update: June 25, 2025
Score: 5/5 (2 votes)

Except as otherwise permitted or required by law, a creditor shall not consider race, color, religion, national origin, or sex (or an applicant's or other person's decision not to provide the information) in any aspect of a credit transaction.

Which of the following is a prohibited basis under the Equal Credit Opportunity Act?

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 groups fall under the Equal Credit Opportunity Act?

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 are the prohibited basis factors of ECOA?

Discrimination
  • race or color.
  • national origin.
  • religion.
  • sex.
  • familial status.
  • handicap.

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 Equal Credit Opportunity Act (ECOA)? Purpose

43 related questions found

Which activities are prohibited under ECOA quizlet?

ECOA prohibits discrimination by lenders in any part of a credit transaction on the basis of: race, color, religion, national origin, sex, marital status, age (has to be 18), the receipt of income from a public assistance program, or having exercised any rights under Consumer Credit Protection Act.

What is prohibited in both ECOA and Fair Housing Act?

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 are examples of prohibited basis?

Prohibited basis means race, color, religion, national origin, sex, marital status, or age (provided that the appli- cant has the capacity to enter into a binding contract); the fact that all or part of the applicant's income derives from any public assistance program; or the fact that the applicant has in good faith ...

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 a prohibited factor?

The definition of prohibited basis varies based on the specific regulation, but the possible prohibited bases are: race or color, religion, national origin, gender or sex, marital status, age, receipt of income from public assistance, exercise of rights under the CCPA, handicap, or familial status.

What falls under equal opportunity?

Equal Employment Opportunity (EEO) is fair treatment in employment, promotion, training, and other personnel actions without regard to race, color, religion, sex, age, national origin, and physical or mental disability.

Which class is not protected under the Equal Credit Opportunity Act?

The ECOA also aims to prevent discrimination in credit transactions, but its protections do not extend to familial status and handicap/disability.

Why are the five cs used?

The five Cs of credit are important because lenders use these factors to determine whether to approve you for a financial product. Lenders also use these five Cs—character, capacity, capital, collateral, and conditions—to set your loan rates and loan terms.

Who falls under the Equal Credit Opportunity Act?

The law applies to any person who, in the ordinary course of business, regularly participates in a credit decision, including banks, retailers, bankcard companies, finance companies, and credit unions.

Which are prohibited bases under the federal 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. Fair lending guarantees the same lending opportunities to everyone.

What is discrimination under the Equal Opportunity Act?

The legislation protects people from discrimination on the basis of their individual attributes in certain areas of public life, and provides redress for people who have been discriminated against. It also aims to eliminate, as far as possible, discrimination, sexual harassment and victimisation.

Which of the following is a prohibited basis 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.

What groups are protected by ECOA?

The FHAct prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing ...

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 are the four types of prohibited conduct?

There are four “main” types of prohibited conduct which include: Direct Discrimination, Indirect Discrimination, Harassment and Victimisation.

What are the nine prohibited basis factors?

Credit Opportunity Act (ECOA) covers all credit transactions. It prohibits discrimination on nine bases—race, color, religion, sex, national origin, age, marital status, receipt of public assistance, and the exercise of a right under the Consumer Credit Protection Act.

What are the prohibited practices under the Equal Credit Opportunity Act?

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 is prohibited by the Fair Housing Act?

The Fair Housing Act makes it illegal to harass persons because of race, color, religion, sex (including gender identity and sexual orientation), disability, familial status, or national origin.

Is redlining under ECOA?

Redlining is prohibited under the following provisions of the ECOA and its implementing regulation: It shall be unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction, on the basis of race, color, or national origin. Equal Credit Opportunity Act, 15 U.S.C.