What Is the Equal Credit Opportunity Act (ECOA)?

The Equal Credit Opportunity Act (ECOA) prevents discrimination in lending based on factors beyond an applicant's ability to repay.

Credit Discrimination

ECOA safeguards against credit discrimination due to factors like race, religion, age, and marital status, focusing on repayment capacity.

Equal Rights

ECOA ensures equal rights in credit applications, limiting creditor decisions to financial criteria like debt, income, and credit history.

Loan Applicants with rights

The ECOA empowers loan applicants with rights, including the freedom to use certain names and informed rejection reasons within 60 days.

Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau enforces ECOA, penalizing lenders for violations with significant punitive damages.