Question of the Week: ECOA-Covered Activities

Question: 

Does the Equal Credit Opportunity Act/Regulation B only cover an applicant who is applying for credit? 

Answer: 

No. The purpose of the Equal Credit Opportunity Act (ECOA) is to require financial institutions to make credit equally available to all creditworthy customers. It is unlawful for any creditor to discriminate against any applicant 1) on the basis of race, color, religion, national origin, sex or marital status, or age (provided the applicant has the ability to contract); 2) because all or part of the applicant’s income derives from any public assistance program; or 3) because the applicant in good faith exercised any right under the Consumer Credit Protection Act. A creditor cannot discriminate against any applicant with respect to any aspect of a credit transaction (i.e., before, during, and after the extension of credit).