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What Is the Equal Credit Opportunity Act?

April 13, 2021

When you make the decision to purchase a piece of real estate, whether it be a home or a commercial property, you may have to take out a line of credit. However, working with creditors isn’t always easy because they need to trust that when you borrow money from them, you will pay them back. There are many laws that protect consumers from any poor behavior from creditors. One of these laws is known as the Equal Credit Opportunity Act, which serves to prevent any creditors from discriminating against any person who may apply for credit. Creditors are not permitted to discriminate against you because of your race, religion, sex, age, marital status, or your status as a person who receives public assistance.

It is important that you know your rights and that your credit application cannot be denied or discouraged because of any of the previously mentioned factors. In addition, creditors can’t use any of these factors against you and charge you with higher fees or a higher interest rate. Any creditors who do discriminate against potential applicants should be held accountable for their wrongdoings.

You should only be judged on your credit report. Your credit report takes into consideration how reliable you are about paying your bills, your credit score, and any other financial information. When it comes to discrimination, you have options and should stand up for your rights. If you have faced discrimination from a creditor, you should speak with an experienced attorney who can help determine if they have violated any state or federal laws and then, consider taking legal action against the discriminatory party.

Juan C. Velasco, Esq. is a trusted attorney who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.