What does the Equal Credit Opportunity Act of 1974 prohibit?

The Equal Credit Opportunity Act (ECOA) of 1974 is a key piece of legislation designed to ensure that all individuals have equal access to credit without facing discrimination. The act specifically prohibits lenders from discriminating against applicants based on race, color, religion, national origin, sex, marital status, or age, provided that the applicant has the capacity to repay the loan.

The primary focus of ECOA is on lending practices, making it illegal for creditors to deny or limit credit based on the aforementioned characteristics. This means that regardless of an individual's background or personal attributes, they should have the same opportunity to receive loans or credit as anyone else.

While age discrimination in employment, discrimination in housing, and discrimination based on sexual orientation are important issues addressed by other laws and regulations, they are not the focus of the ECOA. For example, age discrimination in employment is addressed under the Age Discrimination in Employment Act, while housing discrimination is typically governed by the Fair Housing Act. Discrimination based on sexual orientation is increasingly covered by various local and state laws, but it is not a specific focus of the ECOA.