Equal Credit Opportunity Act Nondiscrimination Requirements

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In a recent letter to credit unions, the National Credit Union Administration (NCUA) summarized general nondiscrimination requirements and signal fair lending risk areas related to marital status, age, income consideration, redlining, and indirect lending.

The Equal Credit Opportunity Act (ECOA) promotes the availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract); to the fact that all or part of the applicant’s income derives from a public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. ECOA prohibits creditor practices that discriminate on the basis of any of these factors. The NCUA supervises for compliance with and enforces ECOA with respect to federal credit unions that have $10 billion or less in total assets.  Additionally, ECOA requires the NCUA to refer certain violations to the U.S. Department of Justice (DOJ).

The letter covers fair lending risk areas that credit unions should be aware of, including:

  • Applicant Marital Status
  • Applicant Age
  • Income Consideration
  • Redlining
  • Indirect Lending

Review the NCUA Letter to Credit Unions 22-CU-04, Equal Credit Opportunity Act Nondiscrimination Requirements.

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