The Equal Credit Opportunity Act or ECOA assures all consumers with equal opportunities of obtaining credits. This of course does not indicate the fact that all those applying for credits are sure to get them. In fact, there are a handful of factors like credit history, income, expenditure and debts or loans of the applicants which are taken into consideration for evaluating their credit-worthiness, prior to sanctioning credits to them.
Primary role of Equal Credit Opportunity Act:
The Equal Credit Opportunity Act is made to safeguard an individual or an entity at the time of dealing with the creditors like credit unions, retail and department stores, banks, credit card companies and small-scale loan and finance companies, who possess the habit of daily extension of credits.Allowances provided by Equal Credit Opportunity Act:
- At the time of applying for credits, the customers are never discouraged on grounds of marital status, sex, age, nationality and race. Even the recipients of public assistance income are equally eligible to get protection under the Act.
