What is Credit Discrimination?
The law prohibits lending institutions from discriminating against an applicant in the granting, withholding, extending, or renewing of credit, or in the fixing of rates, terms, of conditions of any form or credit based on the person’s race, color, national origin, ancestry, religion, sex or disability.
So what does this mean in practical terms? This means that you cannot be turned down for a personal, automotive, or home loan, credit card, or any other credit-based transaction (such as qualifying for a waived deposit or lower interest rates based on credit history) simply based on your being a member of one of these protected classes. All applicants must be treated equally if they are otherwise equally qualified.
Credit discrimination is difficult to detect, as creditors usually give no explanation as to why a particular applicant was refused. However, creditors who illegally discriminate in this manner often reveal a pattern of discrimination. Our investigators work to determine if applicants who are otherwise equal save for one of these protected characteristics are treated differently when it comes to approvals. If we find that an illegal discriminatory act has likely occurred, we take action to remedy the situation and ensure that discriminatory processes are stopped, and victims fairly compensated.