What is the Equal Credit Opportunity Act?

The Equal Credit Opportunity Act (ECOA) is a federal law that prohibits lenders from discriminating against customers when granting loans or other types of credit. The act was created in 1974 and is enforced by the Federal Trade Commission (FTC) and the Federal Reserve Board. Under the ECOA, lenders can’t deny a loan due to a person’s sex, age, race, color, religion, national origin, marital status, receipt of public assistance, or their exercise of any legal right. Lenders also can’t impose different terms and conditions based on those protected categories. The ECOA does not apply to all lenders in Oklahoma, but it does apply to most types of creditors and lenders, including banks, credit unions, finance companies, and some retailers. The ECOA requires creditors to notify customers in writing of the action taken on their loan. This notification must include the reasons for rejecting a loan application. If the application is accepted, the lender must provide the customer with the reasons the loan was approved. The ECOA also gives customers the right to sue if they feel their loan was illegally denied or they were given different terms and conditions based on a protected category. In Oklahoma, customers can file a complaint with the Oklahoma Attorney General’s Office or the Oklahoma Department of Consumer Credit.

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What is the Equal Credit Opportunity Act?

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