The Equal Credit Opportunity Act (ECOA) prohibits credit discrimination on the basis of sex, race, marital status, religion, national origin, age; to the fact that all or part of the applicant's income derives from a public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act, also known as Regulation B. The regulation prohibits creditor practices that discriminate on the basis of any of these factors.

The regulation also requires creditors to notify applicants of action taken on their applications; to report credit history in the names of both spouses on an account; to retain records of credit applications; to collect information about the applicant's race and other personal characteristics in applications for certain dwelling-related loans; and to provide applicants with copies of appraisal reports used in connection with credit transactions.

In certain situations, creditors may request some of this information, except information about religion, but creditors may not use it to discriminate when deciding whether to grant credit.

The Equal Credit Opportunity Act may apply to consumer transactions, as well as business transactions, with companies that regularly extend credit, including banks, finance companies, retail and department stores, credit card issuers, and credit unions. It may also apply to others in the credit granting process, including real estate brokers or mortgage brokers who arrange financing.

The ECOA, a portion of the Consumer Credit Protection Act, provides that the Board of Governors of the Federal Reserve System may issue regulations for enforcement of its provisions. The purpose of these regulations is to, essentially, insure that all consumers receive an equal opportunity to obtain credit. The law applies to banks, finance companies, retail stores, credit card issuers, and, generally, anyone who regularly extends credit.