What is the Equal Credit Opportunity Act?

The Equal Credit Opportunity Act (ECOA) is a federal law that was passed in 1974 to protect consumers from discrimination on the basis of race, color, religion, national origin, gender, marital status, age, or receipt of public assistance when applying for credit. Under ECOA, lenders cannot reject credit applications based on any of these protected characteristics. It also requires that lenders provide the same terms on all credit applications, including interest rates and fees. In South Carolina, ECOA applies to all banks, credit unions, and other lenders that offer credit to consumers, as well as to individuals applying for such credit. If the lender denies the credit application or offers different terms or conditions than they would otherwise offer, the applicant may file a complaint with the Federal Trade Commission (FTC) or the South Carolina Department of Consumer Affairs (SCDCA). The ECOA is important for protecting individuals’ rights to receive credit without facing discrimination. It provides consumers in South Carolina with a more level playing field for receiving the credit they need. If a lender does not comply with the ECOA and a consumer faces discrimination, they have the right to take legal action.

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