The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on a basis of:

• Race;
• Color;
• Religion;
• Natural origin;
• Sex;
• Marital status;
• Age (provided that the applicant has the capacity to enter into a binding contract);
• All or part of the applicant's income derives from any public assistance program;
• The applicant has in good faith exercised any right under the Consumer Protection Act. Research The Act Here

The Housing Financial Discrimination Act of 1977 requires that all lenders provide a "Fair Lending Notice" with the following information:

It is illegal to discriminate in the provision of or in the availability of financial assistance because of the consideration of:

Trends, characteristics or conditions in the neighborhood or geographic area surrounding a housing accommodation, unless the financial institution can demonstrate in the particular case that such consideration is required to avoid an unsafe and unsound business practice.

Race, color, religion, sex, marital status, national origin, or ancestry. It is illegal to consider the racial, ethnic, religious or national origin composition of a neighborhood or geographic area surrounding a housing accommodation or whether or not such composition is undergoing change, or is expected to undergo change, in appraising a housing accommodation or in determining whether or not, or under what terms and conditions, to provide financial assistance.

These provisions govern financial assistance for the purpose of the purchase, construction, rehabilitation or refinancing of one to four unit family residences occupied by the owner and for the purpose of the home improvement of any one to four unit family residence. As part of processing a real estate loan application, lenders may request a credit report about your creditworthiness, credit standing and credit capacity.

For additional reference: Fair Credit Reporting Act

Credit Access and Use Equal Rights

The Equal Credit Opportunity Act guarantees you equal rights in dealing with anyone who regularly offers credit, including banks, finance companies, stores, credit card companies and credit unions.

A creditor is someone to whom you owe money. When you apply for credit, a creditor may not:

• Ask about or consider your sex, race, national origin or religion;
• Ask about your marital status or your spouse, unless you are applying for a joint account or relying on your spouse's income or you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas and Washington);
• Ask about your plans to have or raise children;
• Refuse to consider reliable public assistance income or regularly received alimony or child support; or
• Discount or refuse to consider income because of your sex or marital status or because it is from part-time work or retirement benefits.

You have the right to:

• Have credit in your birth name, your first name and your spouse's last name, or your first name and a combined last name;
• Have a co-signer other than your spouse if one is necessary;
• Keep your own accounts after you change your name or marital status or retire, unless the creditor has evidence you are unable or unwilling to pay;
• Know why a credit application is rejected; the creditor must give you the specific reasons or tell you of your right to find out the reasons if you ask within 60 days;
• Have accounts shared with your spouse reported in both your names; and
• Know how much it will cost to borrow money. The Truth in Lending Act requires a lender to inform you of the cost to borrow, so that you can compare the cost and terms of credit offered by various lenders.

Credit Protection Rights

There are several federal laws that ensure your rights are protected with the most important being . . .

The Fair Credit Reporting Act .

Truth in Lending Act

The Equal Credit Opportunity Act

The Fair Credit Billing Act

The Electronic Fund Transfer Act

In addition, state laws also apply. The Fair Credit Reporting Act (FCRA) was designed specifically to help ensure that credit bureaus furnish businesses with correct and complete information to use when evaluating your application or your creditworthiness.

The FCRA protects consumers by requiring credit bureaus to adopt reasonable procedures regarding confidentiality, accuracy and proper use of your credit information. In summary, the FCRA states:

1. You have the right to know the name of anyone who received your credit report in the last year for most purposes and in the last two years for employment purposes;
2. At your request, a credit reporting agency must provide you with your credit file.

You are entitled to one free report per year if:

• You are unemployed and plan to seek employment in 60 days
• You are on public assistance or welfare;
• Your report is inaccurate due to fraud.
• If you have been denied credit, request a free copy of your credit report within 60 days of denial notification. (use this sample letter)

Inaccurate information must be corrected or deleted by the credit reporting agency, usually within 30 days after you successfully dispute the information; Dispute Procedures

A credit reporting agency may not report negative information, in most cases, that is more than seven years old, or in the case of bankruptcies, 10 years old!

Your consent is required for reports that are provided to employers, or for reports that contain medical information with some other exceptions.

Access to your file is limited only to those with a need recognized by the FCRA, usually to consider an application with a creditor, insurer, employer, landlord or other business.

For more information or in-depth reading here is the complete text of the The Fair Credit Reporting Act .

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