ECOA and Regulation B Coverage Extent

A

ECOA, which stands for Equal Credit Opportunity Act, is a federal law that prohibits creditors from discriminating against applicants based on their race, color, religion, national origin, sex, marital status, age, or because they receive public assistance. Regulation B, which is issued by the Federal Reserve Board to implement the ECOA, provides further guidance on how the law should be interpreted and applied.

The correct answer to the question is (A) All types of credit. ECOA and Regulation B apply to all types of credit, including consumer credit (such as credit cards, personal loans, and mortgages), business credit (such as loans to small businesses), and even credit extended to government entities. There is no limit on the amount of credit that is covered by ECOA and Regulation B.

It is important to note that ECOA and Regulation B do not require creditors to approve every credit application they receive. Rather, they require creditors to evaluate each application based on the applicant's creditworthiness and other relevant factors, and to make credit decisions without regard to the prohibited factors of discrimination. In addition, ECOA and Regulation B require creditors to provide applicants with certain disclosures and notices regarding their credit application and credit decisions.

Overall, ECOA and Regulation B play an important role in promoting fair and equal access to credit for all individuals and businesses, regardless of their personal characteristics or circumstances.