On February 9, the FTC provided the CFPB with its annual summary of activities enforcing the Equal Credit Opportunity Act (ECOA). The release of this summary provides a great opportunity for a round-up and some updates on new developments in this space over the past year.

What is ECOA?

ECOA prohibits discrimination in consumer credit transactions on the basis of a number of protected categories, including race, color, religion, national origin, sex, marital status, and age. The statute’s prohibition covers “any aspect of a credit transaction” – a phrase that has been interpreted by the CFPB to cover creditor activities before, during, and after the extension of credit. In addition, creditors who deny a credit application, provide substantially less credit than requested, or make a change in the terms of an existing credit agreement, must provide applicants with specific reasons for the “adverse action.” Regulation B implements ECOA’s requirements and sets out more detailed rules for creditors to follow.