Definition
A federal law that bans credit discrimination based on race, color, religion, national origin, sex, marital status, age and public assistance income.
What it means
The Equal Credit Opportunity Act, implemented by the CFPB's Regulation B, makes it illegal for a lender to discriminate in any part of a credit transaction because of race, color, religion, national origin, sex, marital status or age (if you are old enough to sign a contract), because income comes from public assistance, or because you exercised rights under consumer credit laws. Lenders can consider immigration status and whether you are a permanent resident when deciding on credit. If you are denied credit or offered worse terms, the lender must generally tell you within 30 days after a completed application and give the specific reasons or tell you how to request them. You can submit complaints to the CFPB or the lender's regulator.
Example
If a lender denies a car loan application, it must generally send a notice within 30 days giving the main reasons, such as a limited credit history or high debt-to-income ratio.
Illustrative numbers only. Your situation will differ.