What is the maximum class action penalty for ECOA violations?

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Multiple Choice

What is the maximum class action penalty for ECOA violations?

Explanation:
The main concept here is the cap on civil penalties in class actions under ECOA. The law sets a statutory limit of $500,000 for a class-action ECOA violation. This is the total penalty the court can award in that single action, regardless of how many individuals are in the class, which helps balance deterrence with practicality. The other amounts aren’t correct because they don’t reflect this cap: $100,000 and $250,000 are below the maximum, while $1,000,000 exceeds it.

The main concept here is the cap on civil penalties in class actions under ECOA. The law sets a statutory limit of $500,000 for a class-action ECOA violation. This is the total penalty the court can award in that single action, regardless of how many individuals are in the class, which helps balance deterrence with practicality. The other amounts aren’t correct because they don’t reflect this cap: $100,000 and $250,000 are below the maximum, while $1,000,000 exceeds it.

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