The Equal Credit Opportunity Act

The Equal Credit Opportunity Act (ECOA) is a vital federal civil rights law designed to ensure fair lending practices across the United States. This law protects individuals from discrimination by lenders based on specific characteristics, allowing everyone to access credit opportunities without bias.

 

ECOA was enacted in October 1974, during a time when discrimination in lending, particularly against women, was prevalent.

Mortgage lenders often undervalued a married woman’s income, especially if she was of childbearing age. Single women faced similar challenges, with studies indicating they were more likely to be denied credit compared to other applicants. To address these inequities, Congress originally passed ECOA to prohibit discrimination based on sex and marital status.

In March 1976, Congress expanded ECOA to further protect against discrimination based on race, color, religion, national origin, age, the receipt of public assistance, and exercising consumer rights. These amendments reinforced the commitment to ensuring fair lending practices for all individuals.

What Does ECOA Protect Against?

ECOA prohibits lenders from discriminating against applicants based on the following factors:

  • Race
  • Color
  • Religion
  • National Origin (the country you or your ancestors were born in)
  • Marital Status
  • Age (as long as the applicant is old enough to enter into a contract)
  • Public Assistance (including benefits like Social Security, Disability Insurance and the Supplemental Nutrition Assistance Program
  • Consumer Rights (exercising your rights under certain consumer protection laws)

ECOA Turns 50

The National Fair Housing Alliance is proud to commemorate the 50 Anniversary of ECOA in 2024 with a special virtual event. For more information, visit our events page.

Your Rights Under ECOA

If you believe you have been discriminated against in the lending process, it is essential to know your rights. ECOA empowers you to seek justice and equality in financial transactions. Consumers who have concerns should contact the Consumer Financial Protection Bureau to file a complaint or call the agency toll-free at (855) 411-2372.