Question

what is one practice outlawed by the equal credit opportunity act (ecoa)?

denying credit based on political affiliation
providing special offers based on age
denying credit based on marital status
providing credit application deadlines according to a persons age

Explanation:

Identify the core purpose of the ECOA

The Equal Credit Opportunity Act (ECOA) was enacted in 1974 to prevent discrimination in credit transactions. It was heavily championed by the Womens Rights movement to ensure women could obtain credit independently.

Analyze the protected classes under the act

The ECOA prohibits creditors from discriminating against applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because they receive public assistance.

Evaluate the given options

• "Denying credit based on political affiliation": Political affiliation is not a protected class under the ECOA.
• "Providing special offers based on age": The act allows certain age-based credit programs that favor older applicants.
• "Denying credit based on marital status": Marital status is explicitly protected under the ECOA. Historically, women were often denied credit without a husband's co-signature.
• "Providing credit application deadlines according to a person's age": This is not a standard practice outlawed by the act.

Determine the correct choice

Denying credit based on marital status is a practice outlawed by the ECOA.

Answer:

• Denying credit based on political affiliation
• Providing special offers based on age
• Denying credit based on marital status (Correct answer)
• Providing credit application deadlines according to a person's age