Asked by Jeffrey Morales on Jun 05, 2024
Verified
The Equal Credit Opportunity Act would not prohibit which of the following? First Bank refuses to extend credit to:
A) females.
B) men over 70 years of age.
C) people with incomes below $10,000.
D) people from Italy.
Equal Credit Opportunity Act
A U.S. law that aims to make it illegal for creditors to discriminate against applicants based on race, color, religion, national origin, sex, marital status, age, or because they receive public assistance.
Extend Credit
Involves offering a loan or allowing goods or services to be purchased now with the agreement to pay later.
Incomes Below
Refers to earnings that fall beneath a specified benchmark, often used in discussions about poverty levels or eligibility for financial assistance.
- Understand the prohibitions under the Equal Credit Opportunity Act against discriminatory lending practices.
Verified Answer
SC
Sarah ChamberlainJun 08, 2024
Final Answer :
C
Explanation :
The Equal Credit Opportunity Act prohibits discrimination based on sex, age (provided the applicant has the capacity to enter into a contract), and national origin, among other factors. However, it does not prohibit credit decisions based on income levels, as income is a legitimate criterion for assessing the ability to repay a loan.
Learning Objectives
- Understand the prohibitions under the Equal Credit Opportunity Act against discriminatory lending practices.