Big Prime is a major lender licensed to lend only in Delaware. Big Prime finds that customers in Sussex County perform far below customers in the other counties. Assume that the county which is heavily into farming and low-paying industrial jobs is 25 percent African-American and has a 40 percent population of legal and illegal immigrants. Big Prime finds that while it is profitable overall, it is losing money on the Sussex County loans. Further research reveals that Sussex County is one of the poorest-performing customer bases nationwide and most companies doing business there are losing money. The board of directors decides not to make any more loans in Sussex County. Big Prime is violating provisions of the:
A) Federal Trade Commission.
B) Fair Credit Reporting Act.
C) Truth-in-Lending Act.
D) Fair Debt Collection Practices Act.
E) Equal Credit Opportunity Act.

Question

Quizplus · Accepted Answer

In 1975, Congress passed the Equal Credit Opportunity Act (ECOA). This Act prohibits discrimination based on sex, marital status, race, color, age, religion, national origin, or receipt of welfare in any aspect of a consumer credit transaction.

Big Prime Is a Major Lender Licensed to Lend Only