You may have heard about credit discrimination, but it can be hard to spot when it happens. You can help people protect their rights by sharing information about what lenders can and can’t do under the Equal Credit Opportunity Act.
Equal Credit Opportunity Act (ECOA)
From the time a person applies for credit or a loan to when the account is closed, the person is protected from discrimination. ECOA prohibits lenders from discriminating against people based on the characteristics listed below, which are considered “protected”:
Race
Color
Religion
National origin
Sex (including sexual orientation and gender identity)
Marital status
Age
Receiving money from public assistance
Please see PDF attachments below for flyers in English, Chinese, Korean, Tagalog, and Vietnamese.
The ECOA applies to loans and credit including:
Car loans
Credit cards
Home loans
Student loans
Business loans
Personal loans
What lenders can’t do under the law:
Reject a credit application based on a consumer’s protected characteristic
Change the credit terms or conditions based on a consumer’s protected characteristic
Ask if the consumer receives alimony, child support, or separate maintenance payments
Ask if the consumer is widowed or divorced
Ask for information about a consumer’s spouse, like the spouse’s income
Treat a consumer differently based on age
Refuse to consider public assistance income the same way as other income
Treat consumers less favorably because of sex, sexual orientation, or gender
Warning signs of discrimination:
Treated differently in person than on the phone or onlin
Discouraged from applying for credit
Hearing the lender make negative comments about race, national origin, sex (including sexual orientation and gender identity), or other protected characteristics
Refused credit even though they qualify for it based on advertised requirements
Offered credit with a higher rate than they applied for, even though they qualify for a lower rate based on advertised requirements
Getting legal help for people who have been discriminated against:
For legal resources listed state by state, visit: lawhelp.org
To find out about eligibility for assistance from a Legal Services program funded by the Legal Services Corporation, visit: lsc.gov/what-legal-aid/find-legal-aid
Locate your state attorney general’s office: https://www.naag.org/find-my-ag/