Equal Credit Opportunity Act - ECOA

The Equal Credit Opportunity Act (ECOA)5 prohibits a creditor from discriminating against an applicant in any aspect of a credit transaction on the basis of the applicant’s race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to contract), receipt of public assistance benefits, or the good faith exercise of a right under the Consumer Credit Protection Act. The ECOA is implemented by the Board’s Regulation B. ECOA and Regulation B apply to all credit transactions. A creditor for these purposes includes all persons who regularly participate in a credit decision, including setting the terms of credit. For purposes of these requirements, the term includes an assignee or potential loan purchaser that influences the credit decision by indicating whether it will purchase the obligation if the transaction is consummated.