![]() Creditors may also consider whether income is steady and reliable. You may not be denied credit because of plans to have children.Ĭreditors must consider your income, even from part-time employment. It helps government agencies enforce anti-discrimination laws. Generally, creditors cannot consider your sex, race or national origin, although you may be asked to provide the information if you want to. However, creditors may ask you to reapply if you relied on your former spouse's income to obtain revolving credit. Nor may they close your account or change the terms of your account on these grounds. Creditors may not require you to reapply for credit just because you marry or become widowed or divorced. For example, you may not be denied credit just because you are a woman, whatever your marital status. Men and women are protected from discrimination based on sex and marital status. They cannot ask for information about your spouse unless your spouse will be allowed to use the credit, is applying with you, has a legal interest in property used as collateral, or if you are relying on your spouse’s income or on alimony or child support income from a former spouse. Generally, creditors may not question you about or consider your race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. Here are some of the basics of what creditors can and cannot do under this law: The best way to determine if you are a victim of credit discrimination is to look at the questions in the credit application. The creditor may tell you ways to improve your chances of getting credit. If you are denied credit, ask the creditor why. You must still pass the creditor's tests of creditworthiness, but the tests must be applied impartially, and without discrimination.Ĭreditors look at factors like income, expenses, debts and credit history in deciding whether or not to issue you credit. This act applies to banks, savings and loan associations, credit unions, finance companies, department stores, credit card issuers, car and appliance dealers and all others who regularly grant credit. In addition, the comment provides guidance on the collection of sexual orientation and gender identity information.The Equal Credit Opportunity Act prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance or because you exercise your rights under federal laws. Scholars present data on economic and other disparities LGBT people face compared to their non-LGBT peers, and discuss the obstacles that LGBT adults face when attempting to access credit. ![]() The comment documents research from the Williams Institute that demonstrates ongoing experiences of discrimination of LGBT people in public and private domains. Currently, more than 7.7 million LGBT adults live in states without explicit statutory protections against discrimination in credit based on sexual orientation and gender identity. Adding sexual orientation and gender identity questions would allow CFPB to address bias in lending and identify particular needs and experiences of LGBT small-business owners. Once finalized, CFPB’s rule would create the first comprehensive database of small business credit applications in the United States. CFPB’s proposal currently does not include questions about principal owners’ sexual orientation or gender identity. The demographic data to be collected would include the ethnicity, race, and sex of the principal owners of the applicant business. The proposed rule by the Consumer Financial Protection Bureau (CFPB) is related to a requirement that financial institutions collect data that would help CFPB enforce fair lending laws and identify business needs and opportunities for minority-owned, women-owned, and all other small businesses.
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