What are the violations of the Equal Credit Opportunity Act include disregard of? (2024)

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What are the violations of the Equal Credit Opportunity Act include disregard of?

prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, 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 ...

What are violations of the Equal Credit Opportunity Act?

It prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age or because a person receives public assistance in whole or in part. It also makes it unlawful to discriminate against anyone who has exercised any rights under the Consumer Credit Protection Act.

What are the restrictions of the Equal Credit Opportunity Act?

This Act (Title VII of the Consumer Credit Protection Act) prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of any rights under the Consumer Credit Protection Act.

What is a red flag for an Equal Credit Opportunity Act violation?

Look for red flags, such as: Treated differently in person than on the phone or online. Discouraged from applying for credit. Encouraged or told to apply for a type of loan that has less favorable terms (for example, a higher interest rate)

What are the damages for violating ECOA?

In addition to actual damages, the Act provides for punitive damages of up to $10,000 in individual lawsuits and up to the lesser of $500,000 or 1 percent of the creditor's net worth in class action suits. Successful complainants are also entitled to an award of court costs and attorney's fees.

What is an example of a fair lending violation?

For example, if a lender refuses to make a mortgage loan because of your race or ethnicity, or if a lender charges excessive fees to refinance your current mortgage loan based on your race or ethnicity, the lender is in violation of the federal Fair Housing Act.

Which action is illegal under the Equal Credit Opportunity Act quizlet?

1. ECOA prohibits creditors from inquiring about a consumer's marital status or intentions related to having or raising children. 2. Creditors may not publish any from of advertisem*nt that would discourage applicants from making or pursuing an application on a prohibited basis, such as membership in a protected class.

What questions are avoided by ECOA?

Because of the Equal Credit Opportunity Act (ECOA), lenders are prohibited from discriminating against you because of your age, marital status, national origin, race, religion, sex, sexual orientation, and if you receieve income from public assistance programs.

What are two questions you should avoid asking based on ECOA What are three things you should not consider when taking June's loan application?

According to the ECOA, two things you should avoid asking June are her marital status and age. Additionally, three facts that should not influence the loan decision include her receipt of public assistance, her national origin, and her gender.

What are the 3 types of lending discrimination?

Types of Lending Discrimination

Overt evidence of disparate treatment; • Comparative evidence of disparate treatment; and • Evidence of disparate impact.

Can you legally be denied credit?

If a business denies you credit or offers you less favorable terms, they must give you a notice that includes: the contact information for the credit bureau that supplied the information about you; and your credit score — if your credit score was a factor in the decision to deny you credit or to offer you less ...

Who enforces the Equal Credit Opportunity Act?

The CFPB shares the job of enforcing ECOA with other federal agencies, including those listed above, as well as the Department of Justice and the Federal Trade Commission . We all work together to ensure that institutions are following the law.

How do I report an ECOA violation?

Report violations to the appropriate government agency.

If you've been denied credit, the creditor must give you the name and address of the agency to contact. Different federal agencies, including the FTC, share enforcement responsibility for the ECOA. Report your concerns to the creditor.

How do I file a complaint with ECOA?

And, we enforce ECOA against companies that violate it – getting money back for you. If you are having a problem or issue with a financial service or product you can submit a complaint online or by calling us toll-free at (855) 411-2372, where we provide services in more than 180 languages.

How many years does a consumer have to take civil action if a creditor violates ECOA?

Ordinarily, a civil action for compensatory damages under ECOA must be filed no later than two years from the date of occurrence of the violation.

What is overt evidence of disparate treatment?

The existence of illegal disparate treatment may be established either by statements revealing that a lender explicitly considered prohibited factors (overt evidence) or by differences in treatment that are not fully explained by legitimate nondiscrimina tory factors (comparative evidence).

What is an example of disparate treatment lending?

It could be a loan officer prioritizing a loan package for a borrower with a surname of Smith over a borrower with a surname of Gonzales. It could be a debt collector using predatory tactics against a female customer while following the rules on collection calls with men because women “are easier to scare into paying”.

What are the protected classes under ECOA?

ECOA is an important federal law promoting fair lending practices. It bars lender discrimination, and guards against bias related to race, religion, national origin, gender, marital status, age, public assistance eligibility, or consumer protection rights.

What are the two laws that govern fair lending?

The federal fair lending laws — the Equal Credit Opportunity Act and the Fair Housing Act — prohibit discrimination in credit transactions, including transactions related to residential real estate.

What does the Truth in Lending Act cover?

The Truth in Lending Act (TILA) protects you against inaccurate and unfair credit billing and credit card practices. It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans.

What are the 3 P's of lending?

These three pillars are the keys to effective credit analysis and can also be referred to as the 3 P's: Policies, Process and People. Policies (or procedures) refer to the overall strategy or framework that guides specific actions. Loan policies provide the framework for an institution's lending activities.

Which of the following is not an example of a prohibited basis for the Equal Credit Opportunity Act?

Explanation: An example that is NOT a prohibited basis for the Equal Credit Opportunity Act is annual income and military status.

What does the Equal Opportunity Act say?

This law makes it illegal to discriminate against someone on the basis of race, color, religion, national origin, or sex.

What three things should you not consider when taking June's loan application?

You should not take into consideration June's number of children, her monthly salary, or the cost of the house she is interested in purchasing when deciding whether or not to grant her the loan she has applied for.

When can violations of ECOA occur?

The Department of Justice may file a lawsuit under ECOA where there is a pattern or practice of discrimination. In cases involving discrimination in home mortgage loans or home improvement loans, the Department may file suit under both the Fair Housing Act and ECOA.

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