Which act prohibits credit discrimination?

The Equal Credit Opportunity Act (ECOA) is specifically designed to prohibit discrimination in credit transactions. This federal law ensures that all consumers are given fair access to credit and are not denied based on race, color, religion, national origin, sex, marital status, or age. By enforcing these principles, the ECOA aims to create a level playing field for all individuals seeking credit and helps to eliminate biases that may exist in lending practices.

The context of this act is particularly significant in that it was enacted to combat discriminatory lending practices that have historically marginalized certain groups, ensuring that individuals have equal opportunity to obtain credit without facing bias in terms of who they are or their backgrounds.

While the Fair Housing Act addresses discrimination in housing-related transactions, it focuses on housing rather than credit. The Americans with Disabilities Act primarily targets discrimination against individuals with disabilities in various sectors, including employment and public services, and does not specifically address credit discrimination. Lastly, the Residential Lead-Based Paint Hazard Reduction Act concentrates on health risks in properties with lead paint and has no bearing on credit practices.

Thus, the ECOA clearly serves the purpose of prohibiting credit discrimination, making it the correct choice.