Asked by Christian Mirakaj on May 12, 2024
Verified
Consumer Finance Corporation (CFC) extends credit to consumers. CFC applies several criteria to decide customers' "suitability" for credit. Under the Equal Credit Opportunity Act, CFC cannot base its decision on a customer's
A) intelligence.
B) education.
C) culture.
D) race.
Equal Credit Opportunity Act
A U.S. law aimed at granting all individuals a fair opportunity to obtain credit, prohibiting discrimination based on race, color, religion, national origin, sex, marital status, age, or because someone receives public assistance.
Consumer Finance Corporation
A financial institution that provides loans to consumers for purchasing consumer goods and services.
Suitability
The appropriateness of a specific investment or financial decision to an individual's unique situation.
- Identify federal laws related to credit and consumer protection.
- Identify actions consumers can take when faced with credit discrimination or inaccurate credit reporting.
Verified Answer
MS
Meline SabatiniMay 16, 2024
Final Answer :
D
Explanation :
The Equal Credit Opportunity Act prohibits discrimination based on race, color, religion, national origin, sex, marital status, age, or because someone receives public assistance. Therefore, CFC cannot base its decision on a customer's race.
Learning Objectives
- Identify federal laws related to credit and consumer protection.
- Identify actions consumers can take when faced with credit discrimination or inaccurate credit reporting.