Asked by Marquel WindyBoy on Apr 29, 2024
Verified
Value Loan Company extends credit to consumers. Value Loan applies a variety of requirements to determine applicants' qualifications for credit, the amount, the interest rate, and other terms. Under the Equal Credit Opportunity Act, the lender cannot base its credit decisions on an applicant's
A) credibility.
B) financial awareness.
C) occupation.
D) gender.
Equal Credit Opportunity Act
A U.S. federal law that prohibits discrimination by lenders against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because they receive public assistance.
Credit Decisions
The process by which lenders determine the creditworthiness of potential borrowers and decide whether to extend credit.
- Comprehend the significance of honesty in credit and financial services, along with the entitlements of debt collectors.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
D
Explanation :
The Equal Credit Opportunity Act prohibits discrimination based on gender (among other factors) in any aspect of a credit transaction. This means lenders cannot make credit decisions—such as determining eligibility, setting terms, or deciding on interest rates—based on the applicant's gender.
Learning Objectives
- Comprehend the significance of honesty in credit and financial services, along with the entitlements of debt collectors.