What is the Equal Credit Opportunity Act?

The Equal Credit Opportunity Act (ECOA) is a federal law that prohibits creditors from discriminating against potential customers on the basis of certain characteristics. These characteristics include factors such as race, sex, marital status, religion, national origin, or age. This law also prohibits creditors from requiring a higher deposit or fee from customers based on any of these characteristics. The Equal Credit Opportunity Act was enacted in 1974 to ensure that everyone in Georgia—and throughout the United States—has the same opportunity to access consumer credit. This includes credit cards, auto loans, mortgages, and other consumer loans. Under the ECOA, creditors are required to inform potential customers of why their application was denied. This enables them to take action if they find the denial was based on an unauthorized factor. The ECOA also states that creditors must provide equal access to services and facilities related to obtaining consumer credit. This includes services such as loan applications, account access, and promotional mailings. In addition to the Equal Credit Opportunity Act, the federal government has passed other laws to protect the rights of consumers in Georgia, including the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. Together, these laws help ensure that consumers in Georgia receive fair treatment from creditors.

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What is the Equal Credit Opportunity Act?

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