What Is the Equal Credit Opportunity Act (ECOA)? Purpose

The Equal Credit Opportunity Act (ECOA) is a federal civil rights law that was signed into law in 1974 and prohibits lending discrimination in all aspects of a credit transaction. It makes it illegal for lenders to discriminate based on various factors such as race, color, religion, national origin, sex, marital status, age, or the receipt of public assistance. The ECOA is enforced by various federal agencies and aims to ensure fair lending practices across all creditors.
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