QUESTION
What state laws are inconsistent with ECOA and considered to be preempted?
ANSWER
A state law is deemed to be inconsistent with the Equal Credit Opportunity Act (ECOA) and less protective
of the applicant to the extent that the law:
- Requires or permits a practice or act prohibited by ECOA;
- Prohibits the individual extension of consumer credit to both parties to a marriage if each spouse individually and voluntarily applied for such credit;
- Prohibits inquiries or collection of data required for ECOA compliance;
- Prohibits asking about or considering age in an empirically derived, demonstrably and statistically sound, credit-worthiness, or to favor an elderly applicant; or
- Prohibits inquiries necessary to establish or administer a special purpose credit program. [12 CFR § 202.11(b)]
President & Managing
Director Lenders Compliance Group
