Podcast
Questions and Answers
Which of the following is NOT a protected characteristic under the Equal Credit Opportunity Act (ECOA)?
Which of the following is NOT a protected characteristic under the Equal Credit Opportunity Act (ECOA)?
According to the Equal Credit Opportunity Act (ECOA), which action is a lender prohibited from taking?
According to the Equal Credit Opportunity Act (ECOA), which action is a lender prohibited from taking?
What is a responsibility of a creditor under the Equal Credit Opportunity Act (ECOA)?
What is a responsibility of a creditor under the Equal Credit Opportunity Act (ECOA)?
Which of the following penalties can be imposed on a creditor for violating the Equal Credit Opportunity Act (ECOA)?
Which of the following penalties can be imposed on a creditor for violating the Equal Credit Opportunity Act (ECOA)?
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Which of the following entities is responsible for enforcing the Equal Credit Opportunity Act (ECOA)?
Which of the following entities is responsible for enforcing the Equal Credit Opportunity Act (ECOA)?
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The Equal Credit Opportunity Act (ECOA) applies to which of the following?
The Equal Credit Opportunity Act (ECOA) applies to which of the following?
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Under the Equal Credit Opportunity Act (ECOA), what are credit reporting agencies NOT allowed to do?
Under the Equal Credit Opportunity Act (ECOA), what are credit reporting agencies NOT allowed to do?
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What is the primary goal of the Equal Credit Opportunity Act (ECOA)?
What is the primary goal of the Equal Credit Opportunity Act (ECOA)?
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Study Notes
Equal Credit Opportunity Act (ECOA)
- ECOA is a US federal law.
- It prohibits discrimination in credit extension based on protected characteristics.
- It covers various credit transactions like loans, mortgages, credit cards, and more.
Protected Characteristics under ECOA
- ECOA prohibits discrimination based on:
- Race
- Color
- Religion
- National origin
- Sex
- Marital status
- Age (18+)
- Receiving public assistance
- Exercising rights under the Consumer Credit Protection Act
Prohibited Actions
- Creditors cannot:
- Deny credit based on protected characteristics
- Offer different credit terms due to protected characteristics
- Discriminate in any credit transaction aspect (application, terms, collections).
- Creditors cannot ask about, or use protected characteristics to assess creditworthiness.
Lender Responsibilities
- Creditors must inform applicants about complaint rights.
- Accurate transaction records are required and available upon request.
- Credit decisions must be impartial and free of stereotypes.
- All applicants must be treated fairly and consistently.
- Interest rates and terms cannot vary based on protected characteristics.
Penalties for Violation
- ECOA violations lead to civil penalties.
- Penalties can include:
- Statutory damages
- Attorney fees
- Equitable relief
- Monetary damages
Credit Reporting Agencies
- ECOA applies to credit reporting agencies.
- Agencies cannot discriminate against individuals based on protected characteristics when making or sharing credit reports.
Enforcement
- The Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) enforce ECOA.
- Individuals can file complaints if they believe they were discriminated against.
Importance of Compliance
- ECOA compliance creates a fair marketplace.
- It ensures equal credit access for all.
- It fosters consumer trust and strengthens the financial system.
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Description
Test your knowledge on the Equal Credit Opportunity Act (ECOA) and its protections against credit discrimination. This quiz covers the protected characteristics and prohibited actions under the law. Dive into the details of this important federal legislation!
