Most people use credit to pay for houses, cars, education, or simply keep their business open. As a borrower, you must be aware of your rights under the Equal Credit Opportunity Act. This information will help prevent lenders from being discriminatory when you try to collect a loan. Denver credit union is interested in ensuring you understand your rights under the equal credit opportunity act for when you want to apply for a loan.
The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforced the equal credit opportunity act to protect borrowers from being mistreated by borrowers. This act prevents any form of credit discrimination on the grounds of race, religion, age, marital status, color, national origin, or because you get public assistance. Although Denver credit union or other lenders might request this information in some situations, they cannot use the information to decide whether or not to give you credit. Creditors cannot also use this information to settle the terms of your credit or determine your interest rate.
The only time your age becomes essential is when you’re younger than the legal age to sign contracts. It also comes in handy if you’re close to retirement and the creditor is trying to determine if your income will drop due to this. Sex discrimination like counting a man’s salary percentage higher than a woman is not allowed with creditors. As a borrower, you can choose to have your credit in your birth name or the combination of your and your spouse’s name. You also don’t need a cosigner to get credit, and when you want a cosigner, you have the right to choose someone other than your spouse.
It is noteworthy that not everyone who applies for credit will get it or get the same term. Many other worthy factors come into play in such situations. Some of these factors include income, expenses, credit history, and debts. Lenders use these considerations to determine their creditworthiness and credit terms.
When you apply for a loan, a borrower has the right to know whether the lender accepts their application or rejects it within 30 days of applying. You also have the right to knowledge about the reason your application was denied. You’re entitled to asking for the specific reason your application wasn’t accepted or why you got less favorable terms than other borrowers. If at any point you suspect that a creditor discriminated against you, you can make a complaint to the creditor. You can also report the credit to the appropriate government agency or sue them in a federal district court.
The Equal Credit Opportunity Act (EQOA) provides protection when you carry out transactions with any organization or person that extends credit. Denver credit unions, banks, finance companies, department stores, credit card companies, and other credit unions fall into this jurisdiction. Anyone who takes part in making decisions to grant credit or settle credit unions is expected to comply with the Equal Credit Opportunity Act.