The Equal Credit Opportunity Act

The Equal Credit Opportunity Act (ECOA) is a federal law, enacted in 1974, that provides for fair and equitable access to credit for individuals in the United States. The act, which is enforced by the Federal Trade Commission, gives individuals certain protections when they apply for credit, including barring lenders from using gender, race, marital status, national origin, or religion to determine who receives credit. The ECOA also prohibits lenders from requiring a cosigner or refusing to consider an individual's regular source of income, such as Social Security income, pensions, or child support payments. Additionally, the ECOA requires lenders to provide adequate notice of any rejected credit applications and to provide an individual with the means to dispute inaccurate information related to his/her credit history. Finally, the ECOA permits lenders to take appropriate action against discriminatory practices.