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Credit Discrimination: 6.5.2.1 General

The ECOA protects applicants from a creditor’s inappropriate consideration of certain sources of the applicant’s income. These protected income sources include income derived from part-time employment, alimony, child support, separate maintenance, retirement benefits, or public assistance.218 These sources of income are related to age, sex, marital status, and public assistance status, and the regulations therefore seek to prevent discrimination based on these sources of income, which could have a disparate impact on a protected group.

Credit Discrimination: 6.5.2.2 Appropriate Methods to Evaluate Protected Income

The ECOA protects applicants from inappropriate evaluation of sources of protected income but does not guarantee that every applicant with such income will be granted credit. A creditor need not consider income at all in evaluating creditworthiness.219 If the creditor does consider income, there are several acceptable methods of evaluating income.

Credit Discrimination: INDIANA

Civil Rights: Ind. Code § 22-9-1-1 to 22-9-1-18 (housing transactions)

Protected Classes: Race, religion, color, sex, disability, national origin, or ancestry.

Prohibited Practices: Exclusion of person from equal opportunities relating to acquisition or sale of real estate, extension of credit. § 22-9-1-3.

Scope of Coverage: Individuals, corporations or other organized groups of persons.

Private Remedies: Injunction; actual damages. § 22-9-1-6(j).

Credit Discrimination: IOWA

Civil Rights: Iowa Code §§ 216.1 to 216.22; Iowa Code § 216.10 (credit transactions)

Protected Classes: Age, color, creed, national origin, race, religion, marital status, sex, sexual orientation, gender identity, physical disability (including HIV infection), familial status.

Prohibited Practices: Refusal to loan or extend consumer credit; imposing finance charges or other terms or conditions more onerous than those regularly extended to persons of similar economic background.

Credit Discrimination: KANSAS

Civil Rights: Kan. Stat. Ann. §§ 44-1001 to 44-1044 (housing transactions)

Protected Classes: Race, religion, color, sex, disability, national origin, familial status, or ancestry of applicant, persons associated with applicant, or prospective owners, lessees, tenants, or occupants of real property in relation to which financial assistance is given.

Credit Discrimination: KENTUCKY

Civil Rights: Ky. Rev. Stat. Ann. §§ 344.010 to 344.990 (West); Ky. Rev. Stat. Ann. § 344.400 (West) (credit transactions)

Protected Classes: Familial status, race, color, religion, national origin and sex, age forty and over, or disability.

Prohibited Practices: Deny credit, increase charges, fees, or collateral on any credit, restrict amount or use of credit extended to any person or any related item or service, or attempt to do any of these things on a prohibited basis.

Credit Discrimination: LOUISIANA

Civil Rights: La. Stat. Ann. § 51:2255 (credit transactions)

Protected Classes: Race, creed, color, religion, national origin, disability, or sex.

Credit Discrimination: MAINE

Civil Rights: Me. Stat. tit. 5, §§ 4595 to 4598 (credit transactions)

Protected Classes: Age, race, color, sex, marital status, ancestry, religion, national origin, gender identity, and sexual orientation.

Credit Discrimination: MARYLAND

Civil Rights: Md. Code Ann., State Gov’t §§ 20-101 to 20-1203 (West) (housing transactions)

Protected Classes: Race, color, religion, sex, familial status, national origin, marital status, sexual orientation, gender identity, disability, or source of income.

Credit Discrimination: MASSACHUSETTS

Civil Rights: Mass. Gen. Laws ch. 151B, § 4(10) (credit transactions)

Protected Classes: Recipients of federal, state, or local public assistance, including medical assistance, or tenants receiving federal, state, or local housing subsidies.

Prohibited Practices: Discriminating against any individual solely on basis of receipt of such assistance.

Scope of Coverage: Applies to any person furnishing credit, services, or rental accommodations.

Credit Discrimination: MICHIGAN

Civil Rights: Mich. Comp. Laws. §§ 37.2101 to 37.2804; Mich. Comp. Laws. § 37.2502 (housing transactions)

Protected Classes: Religion, race, color, national origin, age, sex, familial status, or marital status.

Prohibited Practices: Discriminating in the terms, conditions, or privileges of a real estate transaction.

Scope of Coverage: Persons engaging in real estate transactions, or real estate brokerage or sales.

Credit Discrimination: MINNESOTA

Civil Rights: Minn. Stat. § 363A.16 (credit transactions)

Protected Classes: Race, color, creed, religion, disability, national origin, sex, sexual orientation, marital status, recipients of public assistance.

Prohibited Practices: Discriminating in extension of credit or in requirements for obtaining credit on a prohibited basis.

Scope of Coverage: Personal or commercial credit.

Credit Discrimination: MISSOURI

Civil Rights: Mo. Rev. Stat. §§ 213.010 to 213.112 (housing transactions)

Protected Classes: Race, color, religion, national origin, ancestry, familial status, sex, or disability of applicant, person associated with applicant in connection with the loan, or of prospective tenants, owners, lessees, or occupants of the dwelling which is the subject of the loan. § 213.045.

Prohibited Practices: Denying financial assistance or discriminating in setting terms or conditions of financial assistance. § 213.045.

Credit Discrimination: MONTANA

Civil Rights: Mont. Code Ann. § 49-2-306 (credit transactions)

Protected Classes: Sex, marital status, race, creed, religion, age, physical or mental disability, color, or national origin.

Prohibited Practices: (1) “Financial institution” cannot discriminate on a prohibited basis in terms or conditions, unless based on reasonable grounds; (2) “creditor” cannot discriminate on a prohibited basis.

Credit Discrimination: NEBRASKA

Fair Housing: Neb. Rev. Stat. §§ 20-301 to 20-344

Protected Classes: Race, color, religion, sex, disability, familial status, or national origin.

Credit Discrimination: NEVADA

Consumer Credit: Nev. Rev. Stat. §§ 598B.010 to 598B.180 (Equal Opportunity for Credit)

Protected Classes: Race, color, creed, religion, disability, national origin or ancestry, sex, sexual orientation, gender identity or expression, or marital status.

Prohibited Practices: Discriminating in any aspect of a credit transaction on a prohibited basis. § 598B-100. Sets out specific guidelines for considerations in determining creditworthiness, separate accounts, and separate reporting of credit histories.

Credit Discrimination: NEW HAMPSHIRE

Civil Rights: N.H. Rev. Stat. Ann. §§ 354-A:1 to 354-B:6 (housing transactions)

Protected Classes: Age, sex, gender identity, race, creed, religion, color, marital status, familial status, physical or mental disability, sexual orientation, or national origin.

Credit Discrimination: NEW JERSEY

Civil Rights: N.J. Stat. Ann. §§ 10:5-1 to 10:5-42 (West) (credit transactions)

Protected Classes: Race, creed, color, national origin, ancestry, liability for service in the Armed Forces, age, familial status, marital status, civil union status, pregnancy or breastfeeding, sex, affectional or sexual orientation, disability (including AIDS), domestic partnership status, gender identity or expression, nationality of applicant, or source of lawful income used for rental or mortgage payments.

Credit Discrimination: NEW MEXICO

Civil Rights: N.M. Stat. § 28-1-1 to 28-1-14 (credit transactions)

Protected Classes: Race, religion, color, national origin, ancestry, sex, spousal affiliation, physical or mental handicap, sexual orientation, pregnancy, childbirth or condition related to pregnancy or childbirth, or gender identity.

Credit Discrimination: NEW YORK

Civil Rights: N.Y. Exec. Law § 296-a (McKinney) (credit transactions)

Protected Classes: Race, creed, color, national origin, age, sex, familial or marital status, military status, sexual orientation, gender identity or expression, or disability and, in cases of housing financing, of certain persons associated with applicant, or of prospective occupants, or tenants of the real estate in connection with which housing is sought.

Credit Discrimination: NORTH CAROLINA

Consumer Credit: N.C. Gen. Stat. §§ 25B-1 to 25B-4

Protected Classes: Married and unmarried women.

Prohibited Practices: Denying credit in her own name to woman with same creditworthiness as men who would receive credit. Upon written request, credit reporting agencies must give any separate credit histories and history of joint accounts on file.

Scope of Coverage: Covers any credit, defined as obtaining money, property, labor, or services on a deferred payment basis.

Credit Discrimination: NORTH DAKOTA

Civil Rights: N.D. Cent. Code §§ 14-02.4-01 to 14-02.4-23 (credit transactions)

Protected Classes: Race, color, religion, sex, national origin, age, physical or mental disability, marital status, receipt of public assistance.

Prohibited Practices: Denying credit, discriminating in setting terms or conditions on a prohibited basis (may consider credit histories and take actions permitted or required by ECOA). § 14-02.4-17.

Credit Discrimination: UTAH

Fair Housing: Utah Code Ann. §§ 57-21-1 to 57-21-14 (West); Utah Code Ann. § 57-21-6 (West)

Protected Classes: Race, color, religion, sex, disability, national origin, familial status, source of income, sexual orientation, gender identity, or association with member of protected class.

Prohibited Practices: To discriminate in the making or purchasing of loans or providing other financial assistance in connection with residential real estate transactions.

Credit Discrimination: VERMONT

Consumer Credit: Vt. Stat. Ann. tit. 8, § 10403

Protected Classes: Race, color, religion, national origin, age, sexual orientation, gender identity, sex, marital status, or disability.

Prohibited Practices: Discrimination with respect to credit cards and personal, mortgage, and commercial loans.

Scope of Coverage: Financial institutions, credit unions, licensed lenders.

Private Remedies: Punitive and actual damages; costs and attorney fees permitted.

Credit Discrimination: VIRGIN ISLANDS

Civil Rights: V.I. Code Ann. tit. 10, §§ 61 to 75 (housing transactions)

Protected Classes: Sex, marital status, race, age, disability, religion, color, national origin, creed, political affiliation.

Prohibited Practices: Discrimination in provision of services related to obtaining housing accommodations. § 64(8)(a)(ii). Discrimination in extensions, renewals, or terms of financial assistance. § 64(8)(e).