Your ECOA Rights

Equal Credit Opportunity Act

The Equal Credit Opportunity Act (ECOA) of 1974 was put into effect to protect consumers from discrimination during the credit application and consideration process. The Act prohibits lenders from discriminating against borrowers or applicants because of race, gender, color, religion, age, national origin, sex, marital status, or because they are public assistance recipients. It is not illegal for creditors to request this information, however it is illegal for them to base any credit eligibility decisions on it. Moreover, none of this protected information can be used in the establishment of rates and terms. There are various factors which effect credit eligibility as well as rate determination, such as income, expenses, debts, credit history, and credit score; but according to the ECOA, these are the exclusive factors which should be used in establishing credit, and never the protected information.

To Educate and Protect

The ECOA protects and educates consumers against discrimination from credit organizations, banks, finance companies, brokerages, department stores, credit card companies, credit unions, and other outfits which issues credit, with the Equal Credit Opportunity Act (ECOA) Disclosure. The Disclosure must be issued to all applicants whose credit application has been denied, and all credit granters are bound to its terms. If you believe that your rights according to the ECOA have been violated, and complaints to the creditor have failed, then contact National Financial so we can get you to an attorney who can inform you of your rights.