Which laws protect borrowers from credit discrimination?


April 21, 2017

Responsible borrowers use credit to go to college, open businesses, and buy homes. American consumers should have the opportunity to use credit to build a better future for themselves and their loved ones. Credit discrimination prevents people from having access to these opportunities, and can make credit more expensive.

WATCH FOR WARNING SIGNS

Credit discrimination is often hidden or even unintentional, which makes it hard to spot. Look for red flags, such as:

What protections do I have from credit discrimination?

The Home Mortgage Disclosure Act (HMDA) requires that certain financial institutions collect and report information about home mortgage applications and originations, including the race, ethnicity, and gender of applicants. Some of this information is then made public, which can help identify potential discrimination and thus assist in enforcing the fair lending laws, such as ECOA.

The Equal Credit Opportunity Act makes it illegal for a creditor to discriminate in any aspect of credit transaction based on certain characteristics. The law protects consumers by prohibiting credit discrimination based on the nine characteristics below. In addition, the Fair Housing Act makes many discrimination practices in home financing illegal. 

IT IS ILLEGAL TO:

ON THE BASIS OF:

*Currently, the law supports arguments that the prohibition against sex discrimination also affords broad protection from discrimination based on a consumer’s gender identity and sexual orientation.

MORE WAYS YOU CAN PROTECT YOURSELF

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