Equal Credit Opportunity Act (ECOA)

Federal law enacted in 1974 requiring lenders to give businesses and consumers equal access to credit. The act specifically prohibits credit discrimination on the basis of race, marital status, national origin, age, or dependence on public assistance. Borrowers who exercise their consumer rights under the Consumer Credit Protection Act are also protected from credit discrimination. Lenders are required to respond to credit applications within 30 days, and if the application is rejected, to offer reasons for denying credit. The act is implemented by Federal Reserve Regulation B. See also Effects Test; Prohibited Basis.