Understanding Your Rights Under The Equal Credit Opportunity Act

Home
>
Credit
>
Understanding Your Rights Under The Equal Credit Opportunity Act

Understanding Your Rights Under The Equal Credit Opportunity Act

It wasn't all that long ago that lenders blatantly discriminated when it came to approving credit for women and minority groups. Women were actually asked personal and demeaning questions like, how many children do you plan to have in the future or are you on birth control?

Despite the fact that they were entering the workforce in record numbers, single women were often required to get a cosigner or denied credit altogether. Members of minority groups were denied credit as well, even though they were fully qualified.

Today thanks to the Equal Credit Opportunity Act, millions of consumers from all walks of life are given and equal chance to obtain and use credit to finance educations, buy or remodel homes or get small business loans.

The Equal Credit Opportunity Act, which was passed by congress in 1973 first banned discrimination in credit access on the basis of sex or marital status and was later amended to include race, religion, national origin and age. Of course, this doesn't mean all consumers who apply for credit get it. Factors such as income, expenses, debt and credit history are considerations for credit worthiness.

But the law protects you when you deal with any creditor who regularly extends credit, including banks, small loan and finance companies, retail and department stores, credit card companies, and credit unions. Anyone involved in granting credit, such as real estate brokers who arrange financing, is covered by the law. Businesses applying for credit also are protected by the law.

When You Apply For Credit, A Creditor May Not.

Discourage you from applying for credit because of your sex, marital status, age, race, national origin, or because you receive public assistance income.

Ask you to reveal your sex, race, national origin, or religion. A creditor may ask you to voluntarily disclose this information, except for religion if you're applying for a real estate loan. This information helps federal agencies enforce anti discrimination laws. You may be asked about your residence or immigration status.

Ask if you're widowed or divorced. When permitted to ask marital status, a creditor may only use the terms: married, unmarried, or separated.

Ask about your marital status if you're applying for a separate, unsecured account. A creditor may ask you to provide this information if you live in community property states, Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, and Washington. A creditor in any state may ask for this information if you apply for a joint credit account or one secured by property.

Request information about your spouse, except when your spouse is applying for credit with you. Note: your spouse will be allowed to use the credit account. You are relying on your spouse's income or on alimony or child support income from a former spouse; or if you reside in a community property state.

Inquire about your plans for having or raising children.

Ask if you receive alimony, child support, or separate maintenance payments, unless you're first told that, you don't have to provide this information if you won't rely on these payments to get credit. A creditor may ask if you have to pay alimony, child support, or separate maintenance payments.

A Special Note To Women

A good credit history, a record of how you paid past bills often is necessary to get credit. Unfortunately, this hurts many married, separated, divorced, and widowed women. There are two common reasons women don't have credit histories in their own names: they lost their credit histories when they married and changed their names, or creditors reported accounts shared by married couples in the husband's name only.

If you're married, divorced, separated, or widowed, contact the credit bureaus to make sure all relevant information is in a file under your own name.

To find additional rights you have, what a creditor may not do: when deciding to give you credit or evaluating your income for credit and what to do if you suspect discrimination visit http://www.creditandyou.com/yourcreditright s.html it's free information website!

In The News:

CREDIT MARKETS: Possible Greece Euro Zone Exit Captivates Markets
Wall Street Journal
By DOW JONES NEWSWIRES Fresh worries about the fiscal stability of the euro zone dominated market action Wednesday, as market participants fretted about the possibility of Greece's exit. The fears sent investors into safe-haven assets, ...

and more »

USA TODAY
Ford credit rating boost: 'The Blue Oval is back'
USA TODAY
Moody's also said its outlook for Ford and Ford Credit is stable. The decision appears to vindicate the company's bold but risky decision in 2006 to borrow the staggering $23.4 billion that Mulally often referred to as "a little home improvement loan.
How Ford's Credit Upgrade Helps ShareholdersTheStreet.com
Ford regains assets, including blue logo, after credit upgradeCBS News
Ford credit rating upgrade wins back iconic oval logo pledged awayLos Angeles Times
The Detroit News -Seeking Alpha -Huffington Post
all 401 news articles »

Go Banking Rates
Free and simple ways to view your credit
Fox Business
By Doresa Banning Improving your credit is a great way to better your overall financial standing. But tackling this task first requires knowing where your credit stands. Many of the online offers you see for free or $1 credit scores come with strings ...
Consumers Getting Savvier About Credit ScoresNew York Times (blog)
Action Line: Secret revealed: credit score is not a credit reportSan Jose Mercury News
Getting back to our old (good) credit scoreMarketplace.org
Go Banking Rates -Auto Credit Express (blog) -Huffington Post (blog)
all 13 news articles »

MTV.com
Phillip Phillips Won't Take Credit For 'Home' At 'American Idol' Finale
MTV.com
'It's not really something I would write, so I'm excited to get my own stuff out there,' he tells MTV News. By Kara Warner (@karawarner) , with reporting by Kelly Marino As has been his MO throughout this 11th season of "American Idol," Phillip ...
American Idol: Phillip Phillips Delivers "Brilliant" Finale PerformanceUs Magazine
American Idol Finale Part 2TVOvermind

all 2,064 news articles »

Credit Suisse Reduces Estimates For Brazil Currency, Inflation
Wall Street Journal
SAO PAULO (Dow Jones)--Credit Suisse's economic research department revised a slew of forecasts for the Brazilian economy Wednesday to reflect global uncertainty and local authorities' preference for a weaker currency and lower interest rates.
New Dow Jones Credit Suisse Hedge Fund Index Commentary Offers Insight into ...MarketWatch (press release)
Dow Jones Credit Suisse Hedge Fund Index finished April with only 4 out of 10 ...Opalesque

all 12 news articles »

TEXT: S&P Puts A- Corp. Credit Rtg For Dun & Bradstreet On Watch Neg
Reuters
As a result, we are placing our 'A-' corporate credit rating on D&B on CreditWatch with negative implications. Rating Action On May 23, 2012, Standard & Poor's Ratings Services placed its 'A-' corporate credit rating on Short Hills, ...

and more »

Pardot Gets SaaS Credit Line From Silicon Valley Bank
MarketWatch (press release)
ATLANTA, GA, May 24, 2012 (MARKETWIRE via COMTEX) -- Pardot received a line of credit today from Silicon Valley's premier lending group, adding fuel to one of the fastest growing cloud software providers in the industry. Silicon Valley Bank, financier ...

and more »

AFP
TEXT-Fitch may raise Home Credit & Finance Bank ratings
Reuters
(The following statement was released by the rating agency) May 23 - Fitch Ratings has placed Russia's Home Credit and Finance Bank's (HCFB) Long-term Issuer Default Ratings (IDRs) of 'BB-' on Rating Watch Positive (RWP). A full list of rating actions ...
Fitch Cuts Japan's Credit RatingFox Business
Fitch downgrades Japan's credit rating because of ballooning government debtWashington Post
Fitch cuts Japan's credit rating, cites huge debtAFP
MarketWatch (press release)
all 352 news articles »

Newsday
Two agencies downgrade Suffolk's credit
Newsday
Suffolk Newsday > Long Island > Suffolk Print Aa Two agencies downgrade Suffolk's credit Originally published: May 23, 2012 8:17 PM Updated: May 23, 2012 10:54 PM By RICK BRAND rick.brand@newsday.com Two Wall Street rating agencies Wednesday downgraded ...

and more »

S Korea 1Q Household Credit Declines For First Time In 3 Years
Fox Business
SEOUL – Outstanding household credit in South Korea recorded its first quarterly decline in three years in the January-March period, as a sluggish housing market and year-end bonuses reduced the need for borrowing, the Bank of Korea said Thursday.
S.Korea end-March household credit growth at 2-1/2-yr lowReuters
S. Korea's household credit dips in Q1Yonhap News

all 5 news articles »

Google News