Equal Credit Opportunity Act Amendments
Question
The Equal Credit Opportunity Act (ECOA) was enacted in 1974 to prevent discrimination in credit transactions. In 1975 the act was amended. Which of the following prohibited base/s are now included in it?
Answers
Explanations
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A. B. C. D.D
The Equal Credit Opportunity Act (ECOA) is a federal law enacted in 1974 that aims to prevent discrimination in credit transactions. The ECOA makes it illegal for lenders to discriminate against any applicant based on their race, color, religion, national origin, sex, marital status, or age.
In 1975, the ECOA was amended to include additional prohibited bases of discrimination. These prohibited bases are:
A. National origin: This refers to discrimination based on a person's ancestry, ethnicity, or country of origin. It means that lenders cannot refuse credit or impose different terms based on a person's national origin.
B. Exercise of rights under the Consumer Credit Protection Act: This means that lenders cannot discriminate against applicants who have used their rights under the Consumer Credit Protection Act, such as disputing an error on their credit report or filing a complaint against a lender.
C. Receipt of public assistance income: This means that lenders cannot discriminate against applicants who receive public assistance income, such as welfare or disability benefits.
Therefore, the correct answer to the question is D. All of these prohibited bases are now included in the ECOA.
