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March 18, 2013


Applying for Credit

What other laws protect consumers?

The federal Equal Credit Opportunity Act (ECOA) says that credit grantors may not use certain factors to discriminate against you in a credit deal. A credit grantor may not use age (providing that you are old enough to enter into a legally binding contract), race, color, national origin, sex, marital status, religion, receipt of public aid or the exercise of rights under the Consumer Credit Protection Act, TILA, and related federal law to:

  • discourage or prevent you from applying for credit;
  • refuse you credit if you otherwise qualify;
  • extend you credit on terms different from those granted someone with similar risk (as determined by such factors as ability to repay, credit history, stability and assets); or
  • give you less credit than you asked for, if someone with similar risk would have received that amount or more.

The Equal Credit Opportunity Act does not, however, guarantee that you will receive credit. You still must meet the credit grantor's standards of whether you are worthy of receiving credit.

>>What is the Truth in Lending Act?
>>How does knowing the Annual Percentage Rate help?
>>What other laws protect consumers?
>>When I apply for credit, may a credit grantor ask my age?
>>Does my gender or marital status affect whether I am worthy of credit?
>>May married people open credit accounts that are not also in their spouses' names?
>>If my marital status changes, may a credit grantor force me to reapply for credit?

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