Which act prohibits discrimination on the basis of race, color, nationality, sex, marital status or age in the granting of credit?

• A. Civil Rights Act
• B. Equal Credit Opportunity Act
• C. Fair Housing Act
• D. Lending Equality Act

Answer: (B)

Discrimination in granting credit based on protected characteristics is prohibited by law. The Equal Credit Opportunity Act specifically bars lenders from using race, color, national origin, sex, marital status, or age to decide whether to grant credit or to set its terms, and it requires decisions to be based on creditworthiness and other relevant financial factors. This protection covers the full credit process, including applications, underwriting, and approval or denial, and it also shields applicants who receive public assistance or who have exercised rights under consumer credit laws. The Civil Rights Act deals with discrimination in employment and public accommodations, the Fair Housing Act covers housing-related discrimination, and the Lending Equality Act is not the statute that governs credit decisions.