Equal CreditOpportunity Act
The ECOA ensures everyone has a fair chance to get credit. Learn about your protections against discrimination and how Regulation B enforces these rights.
History & Purpose
Before the Equal Credit Opportunity Act was passed in 1974, discrimination in lending was common. Women were often required to have a male co-signer—even with good income and credit. Lenders routinely denied credit based on race, religion, or national origin.
Women's rights and civil rights groups came together to demand change, arguing it was unfair to deny credit based on factors unrelated to repayment ability. Congress passed ECOA in 1974, signed into law by President Gerald Ford.
ECOA's Purpose: Promote the availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, sex, marital status, or age.
What is Regulation B?
Regulation B is the set of rules created to implement ECOA. It explains in detail what creditors can and cannot do when evaluating credit applications. The Consumer Financial Protection Bureau (CFPB) writes and enforces these rules.
Regulation B Applies To:
Protected Classes Under ECOA
It is illegal for any creditor to discriminate against you based on these characteristics.
Race or Color
A creditor cannot deny you credit or offer less favorable terms because of your race or skin color.
Religion
Your religious beliefs cannot be a factor in any credit decision.
National Origin
A creditor cannot discriminate based on the country you or your ancestors came from.
Sex
Includes gender and sexual orientation. Creditors cannot treat you differently based on gender identity.
Marital Status
Creditors cannot ask if you are married, single, or divorced unless applying for a joint account.
Age
Cannot be denied credit simply for being "too old" or "too young" if you can legally enter contracts.
Public Assistance
Cannot be discriminated against for receiving Social Security, disability, or other public assistance.
Consumer Rights
Cannot face retaliation for exercising rights under the Consumer Credit Protection Act.
What Creditors Must Do
Cannot Discourage Applications
A creditor cannot discourage you from applying for credit based on any protected characteristic.
Use Consistent Standards
Must use the same evaluation standards for all applicants—no different rules for different groups.
Respond Within 30 Days
Must notify you of their decision within 30 days of receiving your completed application.
Provide Written Reasons for Denial
If denied, they must give you specific reasons in writing (adverse action notice).
Provide Appraisal Copies
For mortgages, you have the right to receive a copy of your appraisal—even if denied.