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The Equal Credit Opportunity Act (ECOA) ensures that all consumers are given anequal chance to obtain credit by prohibiting creditors from discriminating againstcredit applicants on the basis of race, color, religion, national origin, sex, maritalstatus, age, or because an applicant receives income from a public assistanceprogram.

Sources: DOJ, FTC, FFIEC, HUD

This doesn't mean all consumers who apply for credit get it: Factors such asincome, expenses, debt, and credit history are considerations for creditworthiness.It does mean that the law protects you when you deal with any creditor who regularlyextends credit, including banks, small loan and finance companies, retail anddepartment stores, credit card companies, and credit unions. Anyone involved ingranting credit, such as real estate brokers who arrange financing, is covered by thelaw.

Businesses applying for credit also are protected by the law.Lending institutions are prohibited from bringing up, in the taking of applicationsfor loans, certain specific subjects which lend themselves to discrimination. They areas follows:

a) Whether or not you have or will have children. (Although inquiring as to the

number and age of dependents is proper).

b) Whether or not child care problems .

c) Whether or not there will be interruptions of income due to childbirth.

d) Whether or not you are receiving alimony, child support or separate

maintenance. (Unless voluntarily disclosed as a source of additional income

which you wish to be considered).

e) Whether you are widowed, divorced, or single. (Allowable designations are:married, unmarried, separated).

f) Whether or not your telephone number is listed.

Lending institutions must take and report action on your application "within areasonable time." If the application is denied, reasons MUST be given if requested.The Department of Justice may file a lawsuit under the ECOA where there is apattern or practice of discrimination. In cases involving discrimination in homemortgage loans or home improvement loans, the Department may file suit under boththe Fair Housing Act and ECOA. Individuals who believe that they have been thevictims of any unfair credit transaction involving residential property may file acomplaint with the Department of Housing and Urban Development (HUD) or may filetheir own lawsuit.

Other federal agencies have general regulatory authority over certain types oflenders and they monitor creditors fortheir compliance with ECOA. ECOArequires these agencies to refermatters to the Justice Departmentwhen there is reason to believe that acreditor is engaged in a pattern orpractice of discrimination whichviolates ECOA. Each year, theDepartment files a report withCongress on its activities under thestatute.exist