Final answer:
The given scenario illustrates an example of credit discrimination, where a lender treats applicants differently based on race in violation of the Equal Credit Opportunity Act. Lenders must base credit decisions on factual financial data and cannot consider personal characteristics such as race or gender.
Step-by-step explanation:
The scenario described is an example of credit discrimination, specifically racial discrimination in the lending process. Under the Equal Credit Opportunity Act (ECOA), it is illegal for lenders to discriminate against applicants based on factors such as race, color, religion, national origin, sex, marital status, age, or because they receive public assistance.
In the scenario where the white couple was given the opportunity to correct misinformation in their credit report while the minority couple was not, the lender's actions suggest a potential violation of the ECOA. This is reminiscent of past practices where lenders engaged in discriminatory behavior, sometimes subtly, by offering different levels of service or opportunities to applicants based on factors other than their creditworthiness.
Lenders are required to make credit decisions based on factual information regarding applicants' past and present financial behavior, without taking into account personal characteristics such as race or gender. When mistakes are found in credit reports, individuals should be given the opportunity to correct them regardless of their race or ethnicity.