What is the Equal Credit Opportunity Act?

The Equal Credit Opportunity Act (ECOA) is a federal law that protects all consumers in the United States, including those living in North Carolina, from discrimination during the credit application process. This law, which was passed in 1974, applies to all consumer-credit transactions regardless of the amount of money involved. The ECOA makes it illegal for any lender to deny an individual a loan or extend a loan to them on terms that are less favorable than those of other consumers because of their race, color, religion, national origin, sex, marital status, age, or whether they receive public assistance. It also prohibits lenders from discriminating against any consumer who has exercised their right to dispute errors on their credit report or who has declared bankruptcy. The ECOA also requires lenders to disclose certain information to applicants. This includes the lender’s name, their address and phone number, the loan’s annual percentage rate (APR), and the loan fees and closing costs. It also requires lenders to provide a written notice if they deny an application and to provide a reason why. Overall, the ECOA is an important part of banking law in North Carolina and it helps ensure that all consumers are treated fairly and given equal access to credit.

Related FAQs

What is the Gramm-Leach-Bliley Act?
What is the Alternative Mortgage Transaction Parity Act?
What is the Bankruptcy Reform Act?
How does the Sarbanes-Oxley Act affect bank governance?
What is the Home Affordable Modification Program?
What is the Consumer Financial Protection Bureau?
What is the Bank Holding Company Supervision Act?
What is the Money Laundering Control Act?
What is the Check Clearing for the 21st Century Act?
What is the Electronic Funds Transfer Act?

What is the Equal Credit Opportunity Act?

Related FAQs

Related Blog Posts