Which act protects against discrimination in credit based on race and other factors?

The Equal Credit Opportunity Act (ECOA) is pivotal in protecting consumers from discrimination in credit transactions. This federal law prohibits lenders from denying credit based on race, color, religion, national origin, sex, marital status, age, or because a person receives public assistance. The primary purpose of the ECOA is to ensure that all individuals have equal access to credit and to promote fairness in lending practices.

By enforcing these protections, the ECOA helps to create a more equitable financial landscape, ensuring that everyone, regardless of their background, has the opportunity to obtain credit without facing bias. This law empowers consumers to challenge discriminatory practices that may arise in lending and holds institutions accountable for adhering to non-discriminatory policies.

In contrast, while the Fair Housing Act does address discrimination, it focuses specifically on housing and related transactions, not broader credit issues. The Consumer Financial Protection Act primarily aims to guard consumers against unfair, deceptive, or abusive practices in financial services but does not solely focus on credit discrimination. Finally, the Home Mortgage Disclosure Act is designed to help identify discriminatory lending practices by requiring certain lenders to disclose data about their mortgage lending, but it does not directly protect against discrimination in credit on its own.