What does the Equal Credit Opportunity Act protect against?

Who the Equal Credit Opportunity Act protects#

The Equal Credit Opportunity Act ensures that all consumers are given an equal chance to obtain credit. It protects consumers who apply for financing with any creditor who regularly extends credit, including banks, finance companies, retail and department stores, credit card companies, and credit unions.

Protected characteristics under the law#

Under the Equal Credit Opportunity Act, a creditor may not discourage a consumer from applying for credit because of certain personal characteristics. These are listed below.

What a lender must tell you if you are declined#

Under the Equal Credit Opportunity Act, a consumer has the right to know whether a complete credit application was accepted or rejected within 30 days of filing. If a creditor rejects an application, the creditor must give notice of either the specific reasons for rejection or the consumer’s right to learn the reasons by asking within 60 days.

Which lenders the law covers#

The Equal Credit Opportunity Act applies to any creditor who regularly extends credit. This includes banks, finance companies, retail and department stores, credit card companies, and credit unions. If one of these lenders discourages you from applying because of a protected characteristic, that may raise a concern under this law.

How to learn more or raise a concern#

The Consumer Financial Protection Bureau publishes guidance on the difference between credit counseling, debt settlement, debt consolidation, and credit repair, which can help you understand your options if you believe your rights under the Equal Credit Opportunity Act were not honored. Cambridge Credit Counseling is a member of the National Foundation for Credit Counseling (NFCC), a nonprofit network that supports consumer credit education.

What to do next#

If you think a lender treated you unfairly because of your sex, race, national origin, marital status, age, or receipt of public assistance, start by reviewing any denial notice you received and the reasons given. You can also review guidance from the Consumer Financial Protection Bureau to understand your options and how credit counseling, debt settlement, debt consolidation, and credit repair differ from one another.