You request this information for use in preparing the bureau of consumer financial protections cfpb 2019 annual report to congress. The ecoa adverse action requirements are implemented in the boards regulation b. Start studying equal credit opportunity act ecoa regulation b crcm study guide. Section 615a of the fair credit reporting act fcra. Regulation b and the equal credit opportunity act ecoa. Part 1002 equal credit opportunity act regulation b bankers online javascript must be enabled for the correct page display. Race color religion national origin sex marital status age applicants income from public assistance. The federal equal credit opportunity act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age provided the applicant has the capacity to enter into a binding contract. Equal credit opportunity act ecoa the equal credit opportunity act ecoa, which is implemented by regulation b, applies to all creditors.
Equal credit opportunity act regulation b dawson coop credit. The cfpbs regulation b, found at 12 cfr part 1002, implements ecoa. Car dealer equal credit opportunity act ecoa compliance. The statute requires finan cial institutions and other firms engaged in the extension of credit to make credit equally available. Equal credit opportunity regulation b background the equal credit opportunity act ecoa of 1974, which is implemented by the boards regulation b, applies to all creditors. The purpose of the equal credit opportunity act the act is to promote the availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, receipt of public assistance. Regulation b is a regulation intended to prevent applicants from being discriminated against in any aspect of a credit transaction. The ecoa prohibits lenders and financial institutions from discriminating when making loans based on any legally protected criteria, including race, religion, age, sex, and more. Equal credit opportunity act promotes the availability of credit to all creditworthy applicants. Mar 28, 2018 the equal credit opportunity act ecoa is a regulation created by the u. The equal credit opportunity act is a critical law that impacts all creditors including auto dealers.
The regulation also requires the credit union to notify applicants of action taken on their applications. The law was enacted in 1974 to make it unlawful for creditors to discriminate in any aspect of a credit transaction on the basis of sex or. The equal credit opportunity act of 1974 ecoa was enacted in an era. The primary objective of ecoa and regulation b is to prevent the denial of credit on the basis of characteristics or conduct that is not related to a borrowers creditworthiness. The board is publishing a final rule amending regulation b equal credit opportunity. Ecoa to the bureau, the bureau is publishing for public comment an interim final rule establishing a new. Learn vocabulary, terms, and more with flashcards, games, and other study tools. It applies to any extension of credit, including extensions of credit to small businesses, corporations, partnerships. Regulation b implements the equal credit opportunity act ecoa and, in part, prohibits a creditor from inquiring about the race, color, religion, national origin or sex of a credit applicant except under certain circumstances. Pdf as amended in 1976, the equal credit opportunity act ecoa outlawed discrimination in granting credit on the basis of race, color, religion. When originally enacted, ecoa gave the federal reserve board responsibility for. Mar 12, 2019 regulation b is a regulation intended to prevent applicants from being discriminated against in any aspect of a credit transaction.
Fresh look at the equal credit opportunity act, a the university of. Section 701 of the equal credit opportunity act ecoa requires a creditor to notify a credit applicant when it has taken adverse action against the applicant. Equal credit opportunity act regulation b disclosure 1. Equal credit opportunity act regulation b regulation b was issued by the board of governors of the federal reserve system to implement the provisions of the equal credit opportunity act ecoa.
The united states sixth circuit court of appeals, in its recent. Federal reserve system 12 cfr part 202 equal credit. Federal reserve system 12 cfr part 202 regulation b. Financial institutions are prohibited from discrimination based on any of these factors. Cfpb consumer laws and regulations ecoa cfpb june 20 ecoa 1 equal credit opportunity act ecoa the equal credit opportunity act ecoa, which is implemented by regulation b, applies to all creditors.
Amendments to equal credit opportunity act regulation b. Nov 08, 2017 the equal credit opportunity act ecoa, 15 u. The equal credit opportunity act ecoa, implemented by regulation b 12 cfr. Most people need access to credit in order to purchase real estate. Fair lending guide national credit union administration. The equal credit opportunity act and regulation b 7 sample the following is a list of business areas within banks that are likely to be affected by the requirements and restrictions of ecoa and regulation b. Regulation b describes lending acts and practices that are specifically prohibited, permitted, or required. Does the equal credit opportunity act apply to spousal. Part 1002 equal credit opportunity act regulation b bankers online javascript must be. B appear to be consistent in that they both prohibit creditors from discriminating against credit.
Equal credit opportunity act ecoa regulation b crcm. The equal credit opportunity act ecoa is a regulation created by the u. You request this information for use in preparing the bureau of consumer financial protections cfpb 2018 annual report to congress. Equal credit opportunity act regulation b federal register. Federal register equal credit opportunity act regulation b. The equal credit opportunity act and regulation b apply to all credit commercial as well as personal without regard to the nature or type of the credit or the creditor, except for an entity excluded from coverage of this part but not the act by section 1029 of the consumer financial protection act of 2010 12 u. Regulation b implements the equal credit opportunity act ecoa and, in part, prohibits a creditor from inquiring about the race, color, religion, national origin, or sex of a credit applicant except under certain circumstances. Pdf theory and evidence of the impact of equal credit. Introduction redit has without question become the american way of life. Federal register equal credit opportunity act regulation. Sections of this regulation with pending amendments are marked with an asterisk below.
The federal trade commission ftc, the nations consumer protection agency, enforces the equal credit opportunity act ecoa, which prohibits credit discrimination on the basis of race, color, religion. Specifically, you ask for information concerning the ftcs activities with respect to regulation b during 2018. The equal credit opportunity act ecoa, which is implemented by regulation b, applies to all creditors. Part 1002 equal credit opportunity act regulation b. The bureau of consumer financial protection bureau is proposing to amend regulation b, which implements the equal credit opportunity act ecoa, and the official interpretation to the regulation, which interprets the requirements of regulation b. Regulation b outlines the rules that lenders must adhere to when. View current regulation search this regulation credit transactions and aspects of credit transactions include. Different banks may identify these areas differently, but the functions should be clear from the names used here. Information regarding ethnicity, race, sex, marital status, and age is being requested by the federal government for the purpose of monitoring compliance with federal statutes that prohibit creditors from discriminating against applicants on those bases. When originally enacted, ecoa gave the federal reserve board responsibility for prescribing the implementing regulation.
People use credit to pay for education or a house, a remodeling job or a car, or to finance a loan to keep their business operating. Official staff interpretations of the regulation are. The equal credit opportunity act and regulation b introduction. The equal credit opportunity act ecoa is a united states law codified at 15 u. The equal credit opportunity act ecoa is a federal civil rights law that protects against discrimination based on a prohibited basis, including race, color, religion, national origin, sex, marital status, age, receipt of public assistance income, and exercising rights under the consumer credit pr otection act. It should stand to reason, therefore, since credit partially determines access to. Specifically, you ask for information concerning the ftcs activities with respect to regulation b during 2019. Apr 17, 2020 regarding the latter requirement, most lenders are inserting a webpage before the small business administrationapproved loan application that includes certain disclosures, including the following model language from section 1002. Ppp loans and complying with the equal credit opportunity act. Equal credit opportunity act regulation b disclosure.