Under the Equal Credit Opportunity Act (ECOA), discrimination is prohibited based on which of the following characteristics?

Under the Equal Credit Opportunity Act (ECOA), discrimination is prohibited based on which of the following characteristics?

• A. Only marital status and religion
• B. Source of income, education level, and gender
• C. Marital status, religion, and source of income
• D. Only source of income

Answer: (C)

The Equal Credit Opportunity Act (ECOA) is designed to ensure fair treatment in lending and prohibits discrimination in credit transactions based on specific characteristics. The correct answer identifies marital status, religion, and source of income as protected characteristics under ECOA. Marital status refers to whether a person is single, married, divorced, or widowed, and it helps ensure that lenders do not discriminate based on a person's relationship status. Religion is similarly protected; lenders cannot refuse credit based on an individual's faith or religious beliefs. The source of income is also included to protect individuals whose income may come from non-traditional sources, such as public assistance or child support, allowing them access to credit opportunities without discrimination. The emphasis of ECOA is to foster equal access to credit regardless of these characteristics, thus promoting a fair lending process. While each of the other options mentions relevant aspects, they either exclude significant categories of discrimination that are prohibited by law or focus too narrowly on specific characteristics, which does not encompass the broader protections afforded by ECOA.

The Equal Credit Opportunity Act (ECOA) is designed to ensure fair treatment in lending and prohibits discrimination in credit transactions based on specific characteristics. The correct answer identifies marital status, religion, and source of income as protected characteristics under ECOA.

Marital status refers to whether a person is single, married, divorced, or widowed, and it helps ensure that lenders do not discriminate based on a person's relationship status. Religion is similarly protected; lenders cannot refuse credit based on an individual's faith or religious beliefs. The source of income is also included to protect individuals whose income may come from non-traditional sources, such as public assistance or child support, allowing them access to credit opportunities without discrimination.

The emphasis of ECOA is to foster equal access to credit regardless of these characteristics, thus promoting a fair lending process. While each of the other options mentions relevant aspects, they either exclude significant categories of discrimination that are prohibited by law or focus too narrowly on specific characteristics, which does not encompass the broader protections afforded by ECOA.