Federal Regulations

Equal Credit Opportunity Act (ECOA)

What is the Equal Credit Opportunity Act (ECOA)?

The Equal Credit Opportunity Act, or ECOA, protects consumer rights throughout the loan process. Lenders cannot discourage you from applying for a loan based on certain characteristics.

The ECOA promotes the availability of credit to all creditworthy applicants without regard to the factors (also called prohibited bases) listed below:

• Race
• Color
• Religion
• National origin
• Sex
• Marital status
• Age
• Receipt of public assistance income (the fact that all or part of the applicant’s income is derived from a public assistance program)
• Exercise of rights under the Consumer Credit Protection Act (Example: You cannot be denied a loan because you have filed a complaint against the bank.)

What type of restrictions does ECOA place on lenders?

ECOA restricts the lender from requesting certain information during the loan application process. In general, the lender may not ask:

• For information about a spouse or former spouse unless your spouse is applying with you. If you are applying for unsecured credit, the lender cannot ask about marital status. If you do not qualify on your own, lenders may require a co-signer or guarantor, but may not require that it be your spouse. If you are jointly applying or the loan is secured, the lender may ask your marital status, but can only use the terms married, unmarried, and separated.

• For income derived from alimony or child support unless you want it considered as part of your income. The lender cannot discount or refuse to consider consistent part-time income, annuities, pensions, alimony, or child support payments.

• About birth control practices or intentions of having children. However, a lender may ask about the number and ages of your dependents.

• About whether you are male or female. Courtesy titles (Mr., Mrs., Miss, Ms.) can be requested, but these are optional.

• For your race, color, religion, or national origin.

Are there any exceptions?

Yes. In most cases, lenders are prohibited from requesting the information above.

However, for home loans, lenders are required by the government to collect some of the information (race, sex, marital status, and age).