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The young man knows the rules, but the old man knows the exceptions.
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Legal Definitions - Equal Credit Opportunity Act
The difference between ordinary and extraordinary is practice.
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Definition of Equal Credit Opportunity Act
The Equal Credit Opportunity Act (ECOA) is a federal law that prohibits creditors from discriminating against credit applicants based on certain characteristics. These characteristics include:
- Race
- Color
- Religion
- National origin
- Age
- Sex
- Marital status
For example, a creditor cannot deny someone a loan simply because they are a certain race or religion. They also cannot charge someone a higher interest rate based on their age or sex.
The ECOA applies to all aspects of a credit transaction, including:
- Applying for credit
- Qualifying for credit
- Setting the terms of credit
- Collecting on a debt
The purpose of the ECOA is to ensure that all individuals have equal access to credit and are not unfairly discriminated against based on certain characteristics.
Ethics is knowing the difference between what you have a right to do and what is right to do.
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Simple Definition
The Equal Credit Opportunity Act is a law that says lenders cannot treat people unfairly when they apply for credit. They cannot say no to someone because of their race, color, religion, national origin, age, sex, or marital status. This law applies to all parts of the credit process.
The end of law is not to abolish or restrain, but to preserve and enlarge freedom.
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