Under the Equal Credit Opportunity Act, lenders are prohibited from discriminating based on what criteria?

The Equal Credit Opportunity Act (ECOA) is designed to ensure that all individuals have an equal chance to obtain credit. One of the fundamental principles of this act is to prevent discrimination based on specific, protected characteristics. Among these characteristics, age and marital status are expressly identified as factors that lenders cannot use to make credit decisions.

By prohibiting discrimination based on age, the ECOA protects individuals from being denied credit simply because of their age, whether they are younger or older. Similarly, marital status discrimination ensures that lenders cannot deny an application based on whether or not an individual is married, single, divorced, or widowed. This protection is crucial in promoting fairness in the lending process and enabling all applicants, regardless of these status factors, to receive equitable consideration.

Other factors listed, such as income level, employment history, and credit card debt, while relevant in determining creditworthiness, do not fall under the discriminatory practices prohibited by the ECOA in the same way. These factors are considered standard criteria that can impact an individual's ability to repay a loan and are not protected under the same provisions for discrimination.