Monday, September 28, 2009

Equal Credit Opportunity Act

The Equal Credit Opportunity Act of 1974 forbids discrimination against credit applicants on the basis of age, sex, marital statues, race, color, religion, national origin receipt of public assistance or good-faith exercise of rights under the federal consumer credit protection laws. Major beneficiaries of this law are women, who no longer can be denied credit solely on the basis of their sex, age, family plans, or the fact that they are not wage earners. Women may receive credit under their own signature, based on their own personal credit record and earnings, without having the husband's joint signature. Credit applications must be notified of the approval or denial of their loan request within 30 days of filling a completed application. The reasons for denial of a loan application must be set forth in writing, and the lender may not request information on the borrower's race, color, religion, national origin, or sex, except in the case of residential mortgage loans.

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