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Getting the Credit You're Due - Understanding The Equal Credit Opportunity Act
by: Michael Saunders According to the Federal Trade Commission - you see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services.
Do yourself a favor and save some money, too. Don't believe these promises. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.
Don't let the condition of your credit report or discrimination stop you from gettting the credit that you need and deserve. The Equal Credit Opportunity Act (ECOA) was enacted by Congress to eliminate discrimination against women seeking to obtain credit. It was expanded to include the prohibition of denying credit based on a person's race, color, place of national origin, religion, sex, age, or marital status. Further, a woman who exercises her rights under the act cannot be "blacklisted" from obtaining credit.
One of the main problems with the ECOA is that it is difficult to prove discrimination since other reasons can be given for denial of credit. Another problem is that the people the law was designed to protect seldom exercise their rights, usually because of one of the following reasons:
1. Because credit rejection may be masqueraded by another reason, the applicant may not even realize she has been a victim of discrimination. 2. Most people don't know their rights under the law and are unaware of the ease of filing a complaint. 3. The applicant may not want to get involved with "fighting the system.
The general rule of thumb to determine whether you have been a victim of discrimination is to ask yourself if you would have been granted the loan if you were a non-minority with the same economic status. The following is a summary of your rights under the ECOA:
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Did you know? (continued...)
Getting the Credit You're Due - Understanding The Equal Credit Opportunity Act
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