Which action is illegal under the Equal Credit Opportunity Act quizlet? (2024)

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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.

Which action is illegal under 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 are the prohibited practices under the Equal Credit Opportunity Act?

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives ...

What is an example of an ECOA violation?

Imposing unfair terms or conditions on a loan (such as lower loan amount or higher interest rates) based on personal characteristics protected under the ECOA. Asking detailed personal information regarding marital status, such as whether you are widowed or divorced.

What is the Equal Opportunity Act quizlet?

Prohibits sex-based discrimination in rates of pay for men and women working in the same or similar jobs. Title VII, Civil Rights Act- 1964. Prohibits discrimination based on race, sex, color, religion, or national origin.

What does the Equal Opportunity Act cover?

RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN Executive Order 11246, as amended, prohibits job discrimination on the basis of race, color, religion, sex or national origin, and requires affirmative action to ensure equality of opportunity in all aspects of employment.

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)

Which activities are prohibited under ECOA quizlet?

ECOA prohibits discrimination by lenders in any part of a credit transaction on the basis of: race, color, religion, national origin, sex, marital status, age (has to be 18), the receipt of income from a public assistance program, or having exercised any rights under Consumer Credit Protection Act.

What does the Equal Credit Opportunity Act of 1974 prohibit quizlet?

Makes it unlawful for any creditor to discriminate against any applicant, based on race, color, religion, national origin, sex, marital status, or age; OR that their income is generated from public assistance programs.

What is prohibited under ECOA and Regulation B?

Regulation B prohibits creditors from requesting and collecting specific personal information about an applicant that has no bearing on the applicant's ability or willingness to repay the credit requested and could be used to discriminate against the applicant.

What is the ECOA rule?

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 the damages for violating the 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 can result from failure to comply with ECOA?

Creditors that fail to comply with Reg B will be held liable for punitive damages up to $10,000 in individual actions. For class actions, the creditor could face a penalty of $500,000 or 1% of the creditor's net worth, whichever is lower.

What generally refers to equal opportunity?

Equality generally refers to equal opportunity and the same levels of support for all segments of society.

What does the Equal Credit Opportunity Act ECOA require lenders to do quizlet?

Lenders are prohibited from discriminating on the basis of age, gender, ethnicity, nationality, or marital status.

Which of the following is something that the Equal Credit Opportunity Act designed to do quizlet?

The ECOA covers your mortgage application and bans discrimination based on race, color, age, sex, marital status, national origin, and several other factors.

What are employers not allowed to discriminate against?

Under the laws enforced by EEOC, it is illegal to discriminate against someone (applicant or employee) because of that person's race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age (40 or older), disability or genetic information.

What does the EEOC investigate?

What does the EEOC do? EEOC investigates complaints of job discrimination based on race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, disability, age (40 or older), or genetic information.

What are the 7 types of discrimination?

Types of Discrimination
  • Age Discrimination.
  • Disability Discrimination.
  • Sexual Orientation.
  • Status as a Parent.
  • Religious Discrimination.
  • National Origin.
  • Pregnancy.
  • Sexual Harassment.

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.

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.

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.

Which of the following is not true concerning ECOA?

Which of the following is not true concerning ECOA? The answer is it requires the disclosure of the APR on all advertisem*nts which contain an interest rate.

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