What is prohibited under ECOA
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 Sep 24, 2021
What are the 9 prohibited bases of Regulation B
(z) Prohibited basis means race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); the fact that all or part of the applicant's income derives from any public assistance program; or the fact that the applicant has in good faith
What is a red flag for an Equal Credit Opportunity Act violation
CFPB advises consumers to watch for warning signs of ECOA violations: You are treated differently in person than on the phone or online. You are discouraged from applying for credit. You hear the lender make negative comments about race, national origin, sex, or other protected groups.
What Act makes it unlawful for any lender to discriminate against any applicant
The Fair Housing Act (FHAct), which is title VIII of the Civil Rights Act of 1968, as amended (42 USC 3601 et seq.), makes it unlawful for any lender to discriminate in its housing-related lending activities against any person because of race, color, religion, national origin, sex, handicap, or familial status.
Which of the following would be excluded from the finance charge
Charges Excluded from Finance Charge: 1) application fees charged to all applicants, regardless of credit approval; 2) charges for late payments, exceeding credit limits, or for delinquency or default; 3) fees charged for participation in a credit plan; 4) seller's points; 5) real estate-related fees: a) title
What are the five Cs of credit
One way to do this is by checking what's called the five C's of credit: character, capacity, capital, collateral and conditions. Understanding these criteria may help you boost your creditworthiness and qualify for credit. Here's what you should know.Sep 29, 2021
Which of the following factors can a lender legally use to charge you a higher interest rate
Your payment history
Most credit cards have a penalty rate—a higher interest rate issuers charge if you are late on your payments, regardless of your credit scores.Jun 25, 2019
Does ECOA apply to all loans
ECOA applies to various types of loans including car loans, credit cards, home loans, student loans, and small business loans.Oct 31, 2016
What is prohibited basis in fair lending
The definition of prohibited basis varies based on the specific regulation, but the possible prohibited bases are: race or color, religion, national origin, gender or sex, marital status, age, receipt of income from public assistance, exercise of rights under the CCPA, handicap, or familial status.Mar 5, 2019
What are prohibited factors
Answer: There are nine prohibited factors under the ECOA. Most people are familiar with seven of them: gender, race, color, religion, national origin, marital status and age.Jan 23, 2012
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 some common ECOA issues
The Top 5 Most Common Violations of the Equal Credit Opportunity
- National origin.
- Sex / gender.
- Marital status.
- Age (unless a person is not of legal age to enter into a contract)
- Status as a public assistance recipient.
Which acts implements the prohibited basis
A: Generally, a lender that applies different lending standards or offers different levels of assistance on a prohibited basis, regardless of its motivation, would be violating both the FH Act and the ECOA.Dec 31, 2019
What is ECOA compliance
Resources to help industry understand, implement, and comply with the fair lending requirements of the Equal Credit Opportunity Act (ECOA) and Regulation B.
Does ECOA apply to deposit accounts
ECOA/Reg B – Consumer Notices (Applications for Credit with or without a consumer report and Deposit Accounts with credit features where a consumer report is used). ECOA/Reg B does not apply to applications for deposit accounts where there is no credit feature.Jun 30, 2020
What does the Equal Credit Opportunity Act prevent quizlet
The Equal Credit Opportunity Act (ECOA) prohibits discrimination in the granting of credit based on race, color, religion, national origin, sex, marital status, age or receipt of public assistance.
What is included in the Truth in Lending Act
Truth In Lending Act Defined
A federal law that helps promote consumer awareness, it essentially requires lenders to provide standardized disclosures about loan terms and costs, including information such as the annual percentage rate, terms of the loan, and total loan cost.Nov 13, 2020
What are the two primary fair lending laws
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.