Under ECOA, which statement is correct regarding protected classes?

Under ECOA, which statement is correct regarding protected classes?

• A. Handicap is protected by ECOA
• B. Handicap is NOT protected by ECOA
• C. Age is not protected by ECOA
• D. Income from government is not protected by ECOA

Answer: (B)

Under ECOA, lenders cannot discriminate in any part of a credit transaction based on certain protected characteristics. These protections include race, color, religion, national origin, sex, marital status, age, and the applicant’s income from public assistance programs, as well as the right to exercise any rights under the Consumer Credit Protection Act. Disability (handicap) is not listed as a protected basis under ECOA; protections for disability come from other laws, such as the Americans with Disabilities Act or the Rehabilitation Act. Therefore, discrimination specifically because someone has a handicap is not barred by ECOA, while discrimination for age or for income from public assistance is barred. Among the statements, the one that handicap is not protected by ECOA is the correct interpretation.

Under ECOA, lenders cannot discriminate in any part of a credit transaction based on certain protected characteristics. These protections include race, color, religion, national origin, sex, marital status, age, and the applicant’s income from public assistance programs, as well as the right to exercise any rights under the Consumer Credit Protection Act. Disability (handicap) is not listed as a protected basis under ECOA; protections for disability come from other laws, such as the Americans with Disabilities Act or the Rehabilitation Act. Therefore, discrimination specifically because someone has a handicap is not barred by ECOA, while discrimination for age or for income from public assistance is barred. Among the statements, the one that handicap is not protected by ECOA is the correct interpretation.