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CHAPTER 2
Credit Discrimination and the Equal Credit
Opportunity Act
It’s no secret that credit is used by millions of consumers to finance an education or a house, remodel a home, or get a small business loan. As explained by the Federal Trade Commission (FTC), the Equal Credit Opportunity Act (ECOA) ensures that all consumers are given an equal chance to obtain credit. However, this doesn’t mean all consum- ers who apply for credit get it. Factors such as income, expenses, debt, and credit history are considerations for creditworthiness. The law protects you when you deal with any creditor who regularly extends credit, including banks, small loan and finance companies, retail and department stores, credit card companies, and credit unions. Anyone involved in granting credit, such as real estate brokers who arrange financing, is covered by the law. Businesses applying for credit also are protected by the law.
When Applying for Credit
When you apply for credit, a creditor may not:
1. Discourage you from applying because of your sex, marital status, age, race, national origin, or because you receive public assistance income.
2. Ask you to reveal your sex, race, national origin, or religion. A creditor may ask you to voluntarily disclose this information (except for religion) if you’re applying for a real estate loan. This
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