top of page

The Equal Credit Opportunity Act

The Equal Credit Opportunity Act Summary

The Equal Credit Opportunity Act (ECOA) is a federal law that prohibits discrimination in credit transactions. It applies to many types of loans, including mortgages, car loans, and credit cards. 

​

What ECOA does

  • Prohibits discrimination based on race, color, religion, national origin, sex, marital status, age, and more 

  • Requires creditors to provide reasons for denying credit 

  • Requires creditors to notify applicants of their decision within 30 days 

  • Requires creditors to evaluate applications based on relevant financial factors 

​

Who enforces ECOA

  • The National Credit Union Administration (NCUA) enforces ECOA for federal credit unions with less than $10 billion in assets 

  • The Department of Justice (DOJ) may file lawsuits against creditors who discriminate 

  • The Department of Housing and Urban Development (HUD) may receive complaints from individuals who believe they have been victims of unfair credit transactions 

​

What ECOA covers 

  • ECOA applies to all extensions of credit, including those to small businesses, corporations, and partnerships

bottom of page