True or false: Age is a protected class under ECOA.

True or false: Age is a protected class under ECOA.

• A. True
• B. False
• C. Not specified
• D. Only in certain circumstances

Answer: (A)

Age is a protected class under ECOA, so the statement is true. The Equal Credit Opportunity Act prohibits discrimination in any aspect of a credit transaction based on protected characteristics, including age. This means a lender cannot deny credit, or impose less favorable terms, solely because of a borrower’s age. In practice, age cannot be the deciding factor by itself; lenders assess repayment ability using legitimate criteria like income and credit history. For applicants under 21, lenders may require a cosigner or proof of independent income to demonstrate repayment ability, rather than making age the basis for denial.

Age is a protected class under ECOA, so the statement is true. The Equal Credit Opportunity Act prohibits discrimination in any aspect of a credit transaction based on protected characteristics, including age. This means a lender cannot deny credit, or impose less favorable terms, solely because of a borrower’s age. In practice, age cannot be the deciding factor by itself; lenders assess repayment ability using legitimate criteria like income and credit history. For applicants under 21, lenders may require a cosigner or proof of independent income to demonstrate repayment ability, rather than making age the basis for denial.