The Equal Credit Opportunity Act

The video tutorial discusses consumer credit discrimination, focusing on prohibited practices such as refusing credit based on race, gender, or marital status. It outlines lender obligations, including income calculation and credit history use. Non-compliance can lead to civil actions, with potential damages and enforcement by the FTC or CFPB.

Which of the following is a prohibited practice in consumer lending?

• Using credit history to assess eligibility

• Providing clear reasons for credit denial

• Refusing credit based on marital status

• Offering lower interest rates to all applicants

What must lenders consider when calculating income for credit eligibility?

• Various sources including spousal support

• Only the applicant's savings

• Only the applicant's salary

• Income from illegal activities

What action can an individual take if a lender fails to comply with credit regulations?

• File a criminal lawsuit

• Seek a civil action

• Ignore the issue

• Request a loan from another bank

Which organization can enforce actions against non-compliant lenders?

• Department of Education

• Environmental Protection Agency (EPA)

• Internal Revenue Service (IRS)

• Federal Trade Commission (FTC)

What type of damages can be recovered in a civil action for non-compliance?

• Emotional damages

• Punitive damages up to $10,000 per incident

• Damages for loss of reputation

• Damages for inconvenience