Article provided by: ComplianceTech
Are you looking for the best lending intelligence services in the United States of America? Then you are in the right place; we are the leading company in providing specialized lending services in the region. We empower our customers in financial decision-making, by enabling our clients to understand their rights as well as enable them to comply with the lending rules in the country. One of the laws protecting consumers from discrimination in the financial marketplace is the Equal Credit Opportunity Act (ECOA). You must have heard about ECOA but if you are yet to hear about the act don’t worry, we’ve summarized all the details about it below.
So what is ECOA?
ECOA is a federal civil rights law that protects all loan customers from any form of discrimination by lenders. Discrimination in the loan market can be of various types, and the bill ensures that every customer is given fair treatment without any discrimination based on;
4. National origin – where you were born or your parents were born
5. Sex, this includes your gender
6. Marital status
Age, your age should not be questioned so long as you have attained the minimum age set by the law for all applicants.
Exercising your rights under specific consumer protection laws.
For instance, a lender can’t deny your loan application or charge you highly, because of the reasons stated on the list above. ECOA can apply to different types of loans such as car loans, home loans, credit cards, small business loans, and student loans. In case you have any problems we help you in finding a way forward and making your application successful.
Why ECOA became a law?
The ECOA act was passed the time when women discrimination at the loan market was common especially when they were applying for loans. For instance, mortgage lenders looked down upon married women especially those at childbearing age. The single women mortgage application didn’t go through, and one had to be in a marriage and apply for the loan through her husband. Many organizations came together and lobbied for the passage of ECOA. Finally, the organizations succeeded, and the Congress passed ECOA in October of 1974 an act that brought hope to all genders since it prohibited lending discrimination based on marital status and sex. It did not take long before the Congress amended the law in March 1976 to further disallow lending discrimination on the loan market based on color, age, race, religion, and national origin.
Who makes sure that lenders obey this law?
Before the CFPB started its operations in 2011, the Federal Reserve Board was writing rules to guide them to implement ECOA. The importance of these rules was to make sure that loan borrowers are protected as well as making the lenders understand how to avoid discrimination. Our work is to ensure that as a lender you have an easy job to comply with the ECOA. We have software that will automatically help you fulfill and avoid legal actions that could lead to your business permit being revoked or fined heavily. You can contact us any time you need our services and learn more about our different products for you.
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