A principal at his private practice, attorney Bruce W. Warren is a veteran who served in the Army National Guard and retired as a lieutenant colonel. While working toward his JD at Suffolk University Law School, attorney Bruce W. Warren contributed to Massachusetts House Bill 1055, which was the predicate to the Equal Credit Opportunity Act (ECOA).
ECOA is a federal law that prohibits credit discrimination on the grounds of race, sex, age, marital status, religion, or national origin. The law further prohibits credit discrimination against people who receive public assistance and people who have previously exercised rights granted to them by the Consumer Credit Protection Act. Besides prohibiting outright denial of credit to these groups, the act prohibits extension of credit at unfavorable terms on the above grounds and protects consumers from discriminatory practices after the extension of credit.
ECOA was enacted in 1974. At the time, some financial institutions were discriminating against women and minorities, requiring them to have more collateral or additional cosigners. Sometimes, members of these groups were asked personal questions unrelated to their financial standing, had their applications unnecessarily delayed, or were subjected to other difficulties during the application process.
The act attempted to remedy this situation by making such discriminatory practices before, during, and after credit is extended unlawful. While financial companies are allowed to check consumers’ income, expenses, credit history, and existing debts before making a decision on whether they should get credit, they may not apply a bias against minority groups. If they do, they may face class action lawsuits by the Department of Justice.
ECOA is a federal law that prohibits credit discrimination on the grounds of race, sex, age, marital status, religion, or national origin. The law further prohibits credit discrimination against people who receive public assistance and people who have previously exercised rights granted to them by the Consumer Credit Protection Act. Besides prohibiting outright denial of credit to these groups, the act prohibits extension of credit at unfavorable terms on the above grounds and protects consumers from discriminatory practices after the extension of credit.
ECOA was enacted in 1974. At the time, some financial institutions were discriminating against women and minorities, requiring them to have more collateral or additional cosigners. Sometimes, members of these groups were asked personal questions unrelated to their financial standing, had their applications unnecessarily delayed, or were subjected to other difficulties during the application process.
The act attempted to remedy this situation by making such discriminatory practices before, during, and after credit is extended unlawful. While financial companies are allowed to check consumers’ income, expenses, credit history, and existing debts before making a decision on whether they should get credit, they may not apply a bias against minority groups. If they do, they may face class action lawsuits by the Department of Justice.
