This is a federal law forbidding lenders from utilizing a consumer’s color, race, national origin, religion, marital status, or gender as a factor for loan approval. It requires fairness and impartiality on the part of the lender so that consumers have the equal opportunity to apply for loans, mortgages, and credit cards. Lenders, however, are free to look at relevant financial information such as credit score, debt load, and income when making a decision about a loan.
Equal Credit Opportunity Act
This is a federal law forbidding lenders from utilizing a consumer’s color, race, national origin, religion, marital status, or gender as a factor for loan approval. It requires fairness and impartiality on the part of the lender so that consumers have the equal opportunity to apply for loans, mortgages, and credit cards. Lenders, however, are free to look at relevant financial information such as credit score, debt load, and income when making a decision about a loan.
