What does the Equal Credit Opportunity Act (ECOA) prohibit?

The Equal Credit Opportunity Act (ECOA) specifically prohibits discrimination in lending practices based on certain protected characteristics, such as race, color, religion, national origin, sex, marital status, or age. This means that lenders cannot refuse to grant credit or provide less favorable terms to individuals based solely on these characteristics. Understanding this law is crucial for ensuring fair access to credit and promoting equality within the finance sector.

The other options, while related to important issues in real estate and lending, do not accurately describe the provisions of the ECOA. Loan payments based on income are a normal part of the lending process and not discriminatory behavior. Denial of home ownership encompasses broader housing issues and is not specifically addressed within the context of the ECOA. Employment discrimination concerns workplace practices and falls under a different set of laws, separate from the lending focus of the ECOA.