GIAC
GCFA · Question #314
GCFA Question #314: Real Exam Question with Answer & Explanation
The correct answer is D. The Equal Credit Opportunity Act (ECOA). The Equal Credit Opportunity Act (ECOA) is the U.S. statute that specifically prohibits creditors from discriminating against applicants based on characteristics such as national origin, religion, race, and similar protected categories.
Question
Which of the following statutes is enacted in the U.S., which prohibits creditors from collecting data from applicants, such as national origin, caste, religion etc?
Options
- AThe Electronic Communications Privacy Act
- BThe Privacy Act
- CThe Fair Credit Reporting Act (FCRA)
- DThe Equal Credit Opportunity Act (ECOA)
Explanation
The Equal Credit Opportunity Act (ECOA) is the U.S. statute that specifically prohibits creditors from discriminating against applicants based on characteristics such as national origin, religion, race, and similar protected categories.
Common mistakes.
- A. The Electronic Communications Privacy Act governs the interception and disclosure of electronic communications, not creditor discrimination in credit applications.
- B. The Privacy Act of 1974 regulates how U.S. federal agencies collect, maintain, and use personal information; it does not apply to private creditors.
- C. The Fair Credit Reporting Act (FCRA) regulates the accuracy, fairness, and privacy of information in consumer credit reports; it does not prohibit creditors from discriminating based on protected characteristics.
Concept tested. ECOA prohibition on credit application discrimination
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