What protections do I have against credit discrimination? | Consumer Financial Protection Bureau (2024)

FAQs

What protections do I have against credit discrimination? | Consumer Financial Protection Bureau? ›

It is illegal to:

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit transaction. It applies to any extension of credit, including extensions of credit to small businesses, corporations, partnerships, and trusts.

The Equal Credit Opportunity Act (ECOA) makes it illegal for creditors (also known as banks, mortgage companies, small loan and finance companies, credit unions, retail and department stores, credit card companies, other online companies offering credit, and people who arrange for credit) to discriminate against you.

If you believe a lender discriminated against you, you can submit a complaint with the Federal Trade Commission (FTC) or with the CFPB online or by calling 1-855-411-CFPB (2372). You can also file a complaint with your state attorney general or state consumer protection office .

You have the right to get a free copy of your credit report within 60 days of being denied credit. Simply contact the credit reporting agency that provided the credit report and ask for a free report. You can also get a free credit report every 12 months.

The Fair Debt Collection Practices Act (FDCPA) The Fair Debt Collection Practices Act (FDCPA) is the main federal law that governs debt collection practices. The FDCPA prohibits debt collection companies from using abusive, unfair, or deceptive practices to collect debts from you.

Altering an applicant's interest rate, credit limit, or credit terms due to their protected status. Requiring loan applicants to provide protected information, such as race, ethnicity, marital status, or other social information, to process their loan application.

The Act (Title VI of the Consumer Credit Protection Act) protects information collected by consumer reporting agencies such as credit bureaus, medical information companies and tenant screening services. Information in a consumer report cannot be provided to anyone who does not have a purpose specified in the Act.

ECOA violations. 1. The lender changes its story after meeting a client face-to-face after telephone conversation approval. 2. There is any indication that the loan is denied based on personal status.

Types of Lending Discrimination

Overt evidence of disparate treatment; • Comparative evidence of disparate treatment; and • Evidence of disparate impact.

Can you sue for wrongful credit reporting? ›

Can You Sue a Company for Inaccurate Credit Reporting? If you were seriously harmed—say, the credit reporting agency continued to give out incomplete or inaccurate information after you requested corrections—you might consider filing a lawsuit. Under the Fair Credit Reporting Act (FCRA) (15 U.S.C.

This Act (Title VII of the Consumer Credit Protection Act) prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of any rights under the Consumer Credit Protection Act.

A credit reporting agency failing to correct any errors or explain why the credit report is correct within 30 days of receiving a notice of dispute by the consumer. An entity pulls or checks your credit (“hard inquiry”) when you never authorized them to do so.

Discouraged from applying for credit. Encouraged or told to apply for a type of loan that has less favorable terms (for example, a higher interest rate) Hearing the lender making negative comments about race, national origin, age, sex (including sexual orientation or gender identity), or other protected statuses.

Called the five Cs of credit, they include capacity, capital, conditions, character, and collateral. There is no regulatory standard that requires the use of the five Cs of credit, but the majority of lenders review most of this information prior to allowing a borrower to take on debt.

If a lender rejects your application, it's required under the Equal Credit Opportunity Act (ECOA) to tell you the specific reasons your application was rejected or tell you that you have the right to learn the reasons if you ask within 60 days.

What is credit discrimination? The Equal Credit Opportunity Act makes it illegal for a creditor to discriminate in any aspect of credit transaction based on certain characteristics.

The Fair Credit Reporting Act (FCRA) , 15 U.S.C. § 1681 et seq., governs access to consumer credit report records and promotes accuracy, fairness, and the privacy of personal information assembled by Credit Reporting Agencies (CRAs).

The FCRA specifies those with a valid need for access. reporting agency may not give out information about you to your employer, or a potential employer, without your written consent given to the employer.

most cases, a consumer reporting agency may not report negative information that is more than seven years old, or bankruptcies that are more than 10 years old. about you only to people with a valid need – usually to consider an application with a creditor, insurer, employer, landlord, or other business.