Using zip codes as a factor in denying credit has been determined to be illegal by the FTC due to possible discrimination that could result.

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In one case, the FTC assessed a $200,000 civil penalty against a major national oil company. The FTC charged that the company practiced race and sex discrimination by using zip codes as a factor in deciding whether to extend credit and by failing to consider women's alimony and child support income.

Using Zip Codes as a Factor in Denying Credit Has