Equal Credit Opportunity Act
May 15, 2012 By Malaise Law Firm
Read more about one of the laws that protects you from credit discrimination. Enacted into law in 1974, the Equal Credit Opportunity Act was a way to protect individuals from discrimination by creditors. A creditor is any individual or business to whom money is owed. For example, if you take out a loan with a particular bank, that bank has become your creditor. Creditors do have the choice to accept or reject individuals from taking out lines of credit with them.
However, they cannot reject individuals on the basis of certain characteristics. Those characteristics are outlined in this act. A crediting agency cannot reject a person based on past credit transactions, race, color, religion, sex, marital status or even age.
A credit card is a way to build good credit, although it can work the opposite way and earn you a poor credit score depending on your timeliness of paying bills. While race cannot be an issue in determining credit eligibility, immigration status is a legitimate factor that can contribute to accepting or denying credit. Some creditors may accept individuals according to these standards, but discriminate against them by making certain people pay higher interest rates and fees. This is explicitly forbidden per the Equal Credit Opportunity Act.
Another thing a creditor may not do is refuse credit to individuals solely because they received public assistance income. This is a form of welfare that is true of those who have received government aid to pay for things like child care and Medicaid. You have the right to know whether your request for credit was accepted or denied within 30 days. Any amount of time further than this is a violation of the act. You also have a right to know why your application was rejected so that you can know whether or not the grounds were justified.
Recent Mercury Insurance claims have risen with recent evidence of illegal denials. According to reports, the company was refusing service to some based solely on their marital and physical status, among other things. This is in direct violation of the Equal Credit Opportunity Act. Many people worry that after filing for bankruptcy, they will be subject to discrimination from creditors. It is true that bankruptcy stays on your credit report years after filing, but you may still be able to qualify for lines of credit. In fact, this is necessary for rebuilding your credit.
The Malaise Law Firm can help defend you against illegal creditor practices such as these. Creditor discrimination is never acceptable and if you believe that you have become a victim in this way, then please consider speaking with an attorney from this firm.
ABOUT THE AUTHOR: Malaise Law Firm
The Malaise Law Firm is a San Antonio bankruptcy firm that exists to help those in Texas struggling with to manage their credit and their finances. Money is difficult enough to handle on its own, let alone with added discrimination from creditors. For strong legal help of this sort, contact a San Antonio bankruptcy attorney from the firm today.
Copyright Malaise Law Firm
More information about Malaise Law Firm
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
A credit card is a way to build good credit, although it can work the opposite way and earn you a poor credit score depending on your timeliness of paying bills. While race cannot be an issue in determining credit eligibility, immigration status is a legitimate factor that can contribute to accepting or denying credit. Some creditors may accept individuals according to these standards, but discriminate against them by making certain people pay higher interest rates and fees. This is explicitly forbidden per the Equal Credit Opportunity Act.
Another thing a creditor may not do is refuse credit to individuals solely because they received public assistance income. This is a form of welfare that is true of those who have received government aid to pay for things like child care and Medicaid. You have the right to know whether your request for credit was accepted or denied within 30 days. Any amount of time further than this is a violation of the act. You also have a right to know why your application was rejected so that you can know whether or not the grounds were justified.
Recent Mercury Insurance claims have risen with recent evidence of illegal denials. According to reports, the company was refusing service to some based solely on their marital and physical status, among other things. This is in direct violation of the Equal Credit Opportunity Act. Many people worry that after filing for bankruptcy, they will be subject to discrimination from creditors. It is true that bankruptcy stays on your credit report years after filing, but you may still be able to qualify for lines of credit. In fact, this is necessary for rebuilding your credit.
The Malaise Law Firm can help defend you against illegal creditor practices such as these. Creditor discrimination is never acceptable and if you believe that you have become a victim in this way, then please consider speaking with an attorney from this firm.
ABOUT THE AUTHOR: Malaise Law Firm
The Malaise Law Firm is a San Antonio bankruptcy firm that exists to help those in Texas struggling with to manage their credit and their finances. Money is difficult enough to handle on its own, let alone with added discrimination from creditors. For strong legal help of this sort, contact a San Antonio bankruptcy attorney from the firm today.
Copyright Malaise Law Firm
More information about Malaise Law Firm
View all articles published by Malaise Law Firm
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
