Bad Credit Medics

The Equal Credit Opportunity Act, ECOA, enacted in the year 1961 and amended from time to time guarantees every resident of the United States of America an equal credit opportunity for availing credit without discrimination of any kind against the applicants.

It is in the interest of all and individuals that every one be aware of this Equal Credit opportunity Act. The United States Department of Justice can initiate action and file a law suit against any discriminator/s either voluntarily or upon receiving complaints from individual consumers who suspect that they are being discriminated against by their creditor/s.

How Does ECOA Benefit You?
Obviously, when you apply for credit for any reason, be it for home mortgage, car loan or business loan you need not have to disclose you nation of origin, race, sex and your religious allegiance. In some other times, issues like your divorce or widowhood may become difficult to explain, thus it can’t be asked by the creditors. However, as it is necessary for records for identification purposes, they are allowed by the ACOA to ask for marital statuses like either you are married or not married.

Your state support incomes like alimony, separate maintenances or child support are separated from your income for the purpose of checking your credit worthiness. Creditors need not ask for your age unless you are either too young or old to sign a contract (beyond 12 and 62 years.) However creditors are allowed to ask age or self estimate for the purpose of determining the earning potential of the applicant; the applicant is going to retire soon within the term of the loan. Again, for the purpose of evaluating your income, creditors will not discriminate between sexes, for example a man’s salary counted at 100% and a woman’s salary less.

How You Can Act Legally, When Discriminated Against?
Exhibit to the creditor you are aware of the ECO Act. If you are unsure, don’t hesitate to check with Attorney Generals of your states. You can also report to appropriate Federal agencies like HUD for home loan cases etc. HUD can take up the case in a district court (even you can) under Fair Housing Act. If courts find a pattern of practice, you can claim damages too.

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