What was the purpose of the Equal Credit Opportunity Act?

prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, relationship, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection …

Why was the ECOA created?

The Equal Credit Opportunity Act (ECOA) is a law created by the U.S. government with the aim of giving all individuals an equal opportunity to obtain loans and other types of credit from financial institutions and other lenders.

What is the purpose of the Equal Credit Opportunity Act quizlet?

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in the granting of credit based on race, color, religion, national origin, relationship, marital status, age or receipt of public assistance.

What is the Equal Credit Opportunity Act of 1974 and how did it affect women’s rights in the US?

Still, a key step in women’s financial freedom came with the passage in 1974 of the Equal Credit Opportunity Act, which granted women the right to obtain credit cards separate from their husbands. …

Who sponsored Equal Credit Opportunity Act?

Sponsor: Rep. Abzug, Bella S. [D-NY-20] (Introduced 05/29/1973)
Committees: House – Banking and Currency
Latest Action: House – 05/29/1973 Referred to House Committee on Banking and Currency. (All Actions)

What is the purpose of Reg B ECOA and FHA?

The ECOA and Regulation B allow creditors to establish special-purpose credit programs for appli cants who meet certain eligibility requirements. Generally, these programs target an economically disadvantaged class of individuals and are autho rized by federal or state law.

When did the Equal Credit Opportunity Act go into effect?

October 28, 1974
The Equal Credit Opportunity Act was signed into law by President Gerald Ford on October 28, 1974. The ECOA prohibits creditors from discrimination on the basis of race, color, religion, national origin, relationship, marital status, or age.

Does the Equal Credit Opportunity Act prohibits discrimination on the basis of handicap?

The FHAct prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, relationship, familial status (including children under the age of 18 living with parents or legal custodians, enceinte women, and people securing …

How is regulation B related to the Equal Credit Opportunity Act quizlet?

Regulation B outlines the rules that lenders must adhere to when obtaining and processing credit information. Lenders are prohibited from discriminating on the basis of age, gender, ethnicity, nationality, or marital status.

Does Reg B apply to credit cards?

The Equal Credit Opportunity Act and Regulation B apply to all credit–commercial as well as personal-without regard to the nature or type of the credit or the creditor, except for an entity excluded from coverage of this part (but not the Act) by section 1029 of the Consumer Financial Protection Act of 2010 (12 U.S.C.

Which of the following is not a prohibited basis listed by the Equal Credit Opportunity Act?

Except as otherwise permitted or required by law, a creditor shall not consider race, color, religion, national origin, or relationship (or an applicant’s or other person’s decision not to provide the information) in any aspect of a credit transaction.

What is Regulation Z?

Regulation Z is a law that protects consumers from predatory lending practices. Also known as the Truth in Lending Act, the law requires lenders to disclose borrowing costs so consumers can make informed choices.

Is it illegal for banks to loan money?

Professor Hyman Minsky once wrote “Banking is not money lending; to lend, a money lender must have money. The fundamental banking activity is accepting, that is, guaranteeing that some party is creditworthy. A bank, by accepting a debt instrument, agrees to make specified payments if the debtor will not or cannot”.

Is Reg B part of fair lending?

The Consumer Financial Protection Bureau’s Regulation B, found at 12 CFR part 1002, implements the ECOA. Regulation B describes lending acts and practices that are specifically prohibited, permitted, or required.

Which is superior law or regulation?

Laws are also rules that govern everyone equally, while regulations only effect those who deal directly with the agency who is enforcing them. In other words, a law can govern the action of both the DEP and the FBI, but the DEP cannot write regulations that would be enforceable to the FBI.

Are loan sharks illegal?

They will lend large sums of money with the intention of gaining high levels of interest in a short time. Loans from loan sharks charge interest rates far above any regulated rate. … In most cases business dealings with a loan shark are illegal; it is best to seek other alternatives.

Is gold coin accepted for gold loan?

Banks neither accept gold bars nor gold bullion for gold loan. You can avail gold loan against gold coins but they must be 99.99% pure with weight not exceeding 50 grams.

Can you go to jail for lying to the bank?

The penalties for a federal bank fraud conviction are severe. You could be sentenced up to 30 years in federal prison, fined up to $1,000,000, or both. Further, you will probably be ordered to pay restitution to the bank for the financial damages.

How do UK deal with loan sharks?

In England, if you think a money lender is operating without being FCA authorised, you can speak in confidence to the Illegal Money Lending Hotline on 0300 555 2222. You can also email the Illegal Money Lending Team at reportaloanshark@stoploansharks.gov.uk or text loan shark and your message to 60003.

Can you call the police on a loan shark?

Also, sometimes when you are paying them, you’re not paying it to them directly. You are actually transferring the money to another person who is borrowing from the loanshark. When that happens, and if the person who is borrowing can no longer service the payment, the person may make a police report.

Are balloon loans illegal?

A balloon payment provision in a loan is not illegal per se. Federal and state legislatures have enacted various laws designed to protect consumers from being victimized by such a loan.