Equal Credit Opportunity Act is known for which of the following?

• A. Prohibiting discrimination in all credit transactions based on any factor
• B. Protecting more classes of persons than the Fair Housing Act, including marital status and age, and protecting people on public assistance programs
• C. Allowing lenders to consider marital status when evaluating loans
• D. Applying only to mortgage loans

Answer: (B)

Equal Credit Opportunity Act is about nondiscrimination in access to credit. Lenders may not discriminate in any credit transaction based on protected characteristics such as marital status, age, or whether the applicant receives public assistance. ECOA applies to all types of credit, not just mortgages, so it protects more classes of people than the Fair Housing Act, which addresses housing discrimination and does not include those extra categories. That’s why the description stating that ECOA protects more classes of persons than the Fair Housing Act, including marital status and age, and protecting people on public assistance programs, best captures what the act does. Discrimination in credit is limited to protected bases; ECOA does not allow considering marital status or age, and it does not apply only to mortgage loans.