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Renee applied for credit to open her own beauty salon. The bank denies her the credit after learning she was recently divorced and receives public assistance income. Which of the following federal laws did the bank violate?

a) Fair Housing Act
b) Equal Credit Opportunity Act
c) Americans with Disabilities Act
d) Civil Rights Act

User Aaronc
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1 Answer

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Final answer:

The bank violated the Equal Credit Opportunity Act by denying credit to Renee based on her recent divorce and public assistance income.

Step-by-step explanation:

The bank violated the Equal Credit Opportunity Act by denying credit to Renee based on her recent divorce and public assistance income. This federal law prohibits creditors from using factors such as gender, race, ethnicity, and age in making decisions regarding the extension of credit. It ended the common practice of lenders discriminating against women by refusing to loan money to them independently of their husbands or considering only the husband's income when extending credit to a family.