Equal Credit Opportunity Act

Federal legislation passed in the mid-1970s, prohibiting discrimination in granting credit based on age, race, religion, sex, ethnic background, or whether a person is receiving public assistance or alimony. The Federal Trade Commission enforces the act.

A federal law, enacted in 1974, to discourage discrimination by lenders on the basis of sex or marital status. Amended in 1976 to prohibit discrimination on the basis of age, race, color, religion, national origin, or receipt of public assistance.
Example: Collins, a divorced woman, is denied a Mortgage loan by a local Savings and Loan Association. She feels she would have obtained the loan if she were a man. She sues the savings and loan under the Equal Credit Opportunity Act. Her steady, permanent part-time earnings are to be considered in granting the loan.