Final answer:
Under the Equal Credit Opportunity Act, a creditor cannot refuse credit based on marital status. This law came into force in 1974, ending discriminatory lending practices against married women and ensuring a fair extension of credit regardless of gender, race, or marital status.
Step-by-step explanation:
The creditor is outlawed from rejecting a borrower based on their marital status under the Equal Credit Opportunity Act. This federal law prohibits discrimination in the extension of credit based on certain factors, including gender, race, marital status, and ethnicity. The Act was put in place to halt the unfair practices that were prevalent at the time, where lenders would often refuse to loan money to married women without their husband's consent or would only consider the husband's income when extending credit to a family.
Historical context shows that women, particularly married ones, experienced significant gender discrimination when it came to financial matters. Female veterans applying for Veterans Affairs home loans were not exempt from such discrimination. With the introduction of the Equal Credit Opportunity Act in 1974, after campaigns by feminists and consumer activists, these discriminatory lending practices were declared illegal, fostering a more equitable credit system.