On This Day

Equal Credit Opportunity Act Outlaws Discrimination

Discrimination is and always has been wrong, which is why, in 2018, the question of equal rights for those of all races, gender identities, and nationalities is at the forefront. The same may be said of October 28, 1974, when the Equal Credit Opportunity Act (ECOA) became federal law. The landmark civil rights law made it illegal for lenders to discriminate on the basis of religion, race, color, national origin, age, sex, marital status, receiving income from a public assistance programming, or exercising any right under the Consumer Credit Protection Act. Net-net, the only factors that may be used to determine whether someone gets a loan approved are their income, credit score, and existing debt load. Passed at a time when discrimination haunted single and married women alike applying for credit, the ECOA helped American women make important strides toward financial independence. Who can argue with that?

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