Consumer Rights

Consumer Rights

You Have Rights as a Consumer

The following is taken from the Federal Trade Commission’s website on consumer rights under the Equal Credit Opportunity Act (ECOA). Understand your rights so you may make more knowledgeable decisions regarding your credit.

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Federal Trade Commission (FTC)

People use credit to pay for education or a house, a remodeling job or a car, or to finance a loan to keep their business operating.

The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Equal Credit Opportunity Act (ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance. Creditors may ask you for most of this information in certain situations, but they may not use it when deciding whether to give you credit or when setting the terms of your credit. Not everyone who applies for credit gets it or gets the same terms: Factors like income, expenses, debts, and credit history are among the considerations lenders use to determine your creditworthiness.

Equal Credit Opportunity Act (ECOA)

The law provides protections when you deal with any organizations or people who regularly extend credit, including banks, small loan financing companies, retail and department stores, credit card companies, and credit unions. Everyone who participates in the decision to grant credit or in setting the terms of that credit, including real estate brokers who arrange to finance, must comply with the ECOA.

When You Apply for Credit, Creditors May Not…

If You Suspect a Creditor has Discriminated Against You, Take Action

  • Complain to the creditor. Sometimes you can persuade the creditor to reconsider your application.
  • Check with your state Attorney General’s office to see if the creditor violated state equal credit opportunity laws.
  • Consider suing the creditor in federal district court. If you win, you can recover your actual damages and be awarded punitive damages if the court finds that the creditor’s conduct was willful. You also may recover reasonable lawyers’ fees and court costs. Or you might consider finding others with the same claim, and getting together to file a class-action suit. An attorney can advise you on how to proceed.
  • Report violations to the appropriate government agency. If you’ve been denied credit, the creditor must give you the name and address of the agency to contact.