Question

This client is denied a loan to purchase a home because she has not lived in the country for at least ten years. Which Act is this adverse action violating, and where should the client report this action to?

Answer 1

The adverse action in denying a loan to a client violates the Equal Credit Opportunity Act (ECOA), and the client should report it to the Consumer Financial Protection Bureau (CFPB).

Step-by-step explanation:

This adverse action of denying a loan to purchase a home to a client who has not lived in the country for at least ten years violates the Equal Credit Opportunity Act(EEOA) passed by Congress in 1974. The ECOA prohibits creditors from discriminating against applicants on the basis of race, color, religion, national origin, sex, marital status, or age.

The client should report this action to the Consumer Financial Protection Bureau (CFPB). The CFPB is a government agency responsible for enforcing federal consumer financial laws, including the ECOA. The adverse action in denying a loan to a client violates the Equal Credit Opportunity Act (ECOA), and the client should report it to the Consumer Financial Protection Bureau (CFPB).