Equal Credit Opportunity Act (ECOA)

The Equal Credit Opportunity Act (ECOA) is a regulation created by the U.S. government that aims to give all legal individuals an equal opportunity to apply for loans from financial institutions and other loan granting organizations. The Equal Credit Opportunity Act states that individuals cannot be discriminated upon by factors that are not directly related to their creditworthiness. It prohibits creditors and lenders from considering a consumer’s race, color, national origin, sex, religion, or marital status in deciding whether to approve their credit application. Financial institutions also cannot deny credit based on age. Nor can they deny credit because the applicant is receiving public assistance.