
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC1691]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
                 SUBCHAPTER IV--EQUAL CREDIT OPPORTUNITY
 
Sec. 1691. Scope of prohibition


(a) Activities constituting discrimination

    It shall be unlawful for any creditor to discriminate against any 
applicant, with respect to any aspect of a credit transaction--
        (1) on the basis of race, color, religion, national origin, sex 
    or marital status, or age (provided the applicant has the capacity 
    to contract);
        (2) because all or part of the applicant's income derives from 
    any public assistance program; or
        (3) because the applicant has in good faith exercised any right 
    under this chapter.

(b) Activities not constituting discrimination

    It shall not constitute discrimination for purposes of this 
subchapter for a creditor--
        (1) to make an inquiry of marital status if such inquiry is for 
    the purpose of ascertaining the creditor's rights and remedies 
    applicable to the particular extension of credit and not to 
    discriminate in a determination of credit-worthiness; \1\
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    \1\ So in original. Probably should not be hyphenated.
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        (2) to make an inquiry of the applicant's age or of whether the 
    applicant's income derives from any public assistance program if 
    such inquiry is for the purpose of determining the amount and 
    probable continuance of income levels, credit history, or other 
    pertinent element of credit-worthiness \1\ as provided in 
    regulations of the Board;
        (3) to use any empirically derived credit system which considers 
    age if such system is demonstrably and statistically sound in 
    accordance with regulations of the Board, except that in the 
    operation of such system the age of an elderly applicant may not be 
    assigned a negative factor or value; or
        (4) to make an inquiry or to consider the age of an elderly 
    applicant when the age of such applicant is to be used by the 
    creditor in the extension of credit in favor of such applicant.

(c) Additional activities not constituting discrimination

    It is not a violation of this section for a creditor to refuse to 
extend credit offered pursuant to--
        (1) any credit assistance program expressly authorized by law 
    for an economically disadvantaged class of persons;
        (2) any credit assistance program administered by a nonprofit 
    organization for its members or an economically disadvantaged class 
    of persons; or
        (3) any special purpose credit program offered by a profit-
    making organization to meet special social needs which meets 
    standards prescribed in regulations by the Board;

if such refusal is required by or made pursuant to such program.

(d) Reason for adverse action; procedure applicable; ``adverse action'' 
        defined

    (1) Within thirty days (or such longer reasonable time as specified 
in regulations of the Board for any class of credit transaction) after 
receipt of a completed application for credit, a creditor shall notify 
the applicant of its action on the application.
    (2) Each applicant against whom adverse action is taken shall be 
entitled to a statement of reasons for such action from the creditor. A 
creditor satisfies this obligation by--
        (A) providing statements of reasons in writing as a matter of 
    course to applicants against whom adverse action is taken; or
        (B) giving written notification of adverse action which 
    discloses (i) the applicant's right to a statement of reasons within 
    thirty days after receipt by the creditor of a request made within 
    sixty days after such notification, and (ii) the identity of the 
    person or office from which such statement may be obtained. Such 
    statement may be given orally if the written notification advises 
    the applicant of his right to have the statement of reasons 
    confirmed in writing on written request.

    (3) A statement of reasons meets the requirements of this section 
only if it contains the specific reasons for the adverse action taken.
    (4) Where a creditor has been requested by a third party to make a 
specific extension of credit directly or indirectly to an applicant, the 
notification and statement of reasons required by this subsection may be 
made directly by such creditor, or indirectly through the third party, 
provided in either case that the identity of the creditor is disclosed.
    (5) The requirements of paragraph (2), (3), or (4) may be satisfied 
by verbal statements or notifications in the case of any creditor who 
did not act on more than one hundred and fifty applications during the 
calendar year preceding the calendar year in which the adverse action is 
taken, as determined under regulations of the Board.
    (6) For purposes of this subsection, the term ``adverse action'' 
means a denial or revocation of credit, a change in the terms of an 
existing credit arrangement, or a refusal to grant credit in 
substantially the amount or on substantially the terms requested. Such 
term does not include a refusal to extend additional credit under an 
existing credit arrangement where the applicant is delinquent or 
otherwise in default, or where such additional credit would exceed a 
previously established credit limit.

(e) Appraisals; copies of reports to applicants; costs

    Each creditor shall promptly furnish an applicant, upon written 
request by the applicant made within a reasonable period of time of the 
application, a copy of the appraisal report used in connection with the 
applicant's application for a loan that is or would have been secured by 
a lien on residential real property. The creditor may require the 
applicant to reimburse the creditor for the cost of the appraisal.

(Pub. L. 90-321, title VII, Sec. 701, as added Pub. L. 93-495, title V, 
Sec. 503, Oct. 28, 1974, 88 Stat. 1521; amended Pub. L. 94-239, Sec. 2, 
Mar. 23, 1976, 90 Stat. 251; Pub. L. 102-242, title II, Sec. 223(d), 
Dec. 19, 1991, 105 Stat. 2306.)


                               Amendments

    1991--Subsec. (e). Pub. L. 102-242 added subsec. (e).
    1976--Subsec. (a). Pub. L. 94-239 designated existing provisions as 
cl. (1), expanded prohibition against discrimination to include race, 
color, religion, national origin and age, and added cls. (2) and (3).
    Subsec. (b). Pub. L. 94-239 designated existing provisions as cl. 
(1) and added cls. (2) to (4).
    Subsecs. (c), (d). Pub. L. 94-239 added subsecs. (c) and (d).


                             Effective Date

    Section 708, formerly Sec. 707, of title VII of Pub. L. 90-321, as 
added by Pub. L. 93-495, title V, Sec. 503, Oct. 28, 1974, 88 Stat. 
1525, renumbered and amended by Pub. L. 94-239, Secs. 7, 8, Mar. 23, 
1976, 90 Stat. 255, provided that: ``This title [enacting this 
subchapter and provisions set out as notes under section 1691 of this 
title] takes effect upon the expiration of one year after the date of 
its enactment [Oct. 28, 1974]. The amendments made by the Equal Credit 
Opportunity Act Amendments of 1976 [enacting section 1691f of this 
title, amending this section and sections 1691b, 1691c, 1691d, and 1691e 
of this title, repealing section 1609 of this title, enacting provisions 
set out as notes under this section, and repealing provisions set out as 
a note under this section] shall take effect on the date of enactment 
thereof [Mar. 23, 1976] and shall apply to any violation occurring on or 
after such date, except that the amendments made to section 701 of the 
Equal Credit Opportunity Act [this section] shall take effect 12 months 
after the date of enactment [Mar. 23, 1976].''


                               Short Title

    This subchapter known as the ``Equal Credit Opportunity Act'', see 
Short Title note set out under section 1601 of this title.


             Congressional Findings and Statement of Purpose

    Section 502 of Pub. L. 93-495 provided that: ``The Congress finds 
that there is a need to insure that the various financial institutions 
and other firms engaged in the extensions of credit exercise their 
responsibility to make credit available with fairness, impartiality, and 
without discrimination on the basis of sex or marital status. Economic 
stabilization would be enhanced and competition among the various 
financial institutions and other firms engaged in the extension of 
credit would be strengthened by an absence of discrimination on the 
basis of sex or marital status, as well as by the informed use of credit 
which Congress has heretofore sought to promote. It is the purpose of 
this Act [see Short Title note set out under section 1601 of this title] 
to require that financial institutions and other firms engaged in the 
extension of credit make that credit equally available to all credit-
worthy customers without regard to sex or marital status.''

                  Section Referred to in Other Sections

    This section is referred to in sections 1681a, 1691d, 1691e of this 
title.
