Final answer:
The Equal Credit Opportunity Act of 1974 is a federal law that prohibits discrimination in credit lending based on gender, race, ethnicity, and sometimes age, fostering equal access to credit for all consumers and businesses. It marked a significant step towards financial equality, especially for women, aligning with the civil rights movement's progress during that period.
Step-by-step explanation:
The Equal Credit Opportunity Act of 1974 is a federal law that prohibits credit discrimination on the basis of gender, race, ethnicity, and, under certain conditions, age. This pivotal legislation was instrumental in ending discriminatory practices that were prevalent in credit lending, particularly against women. For example, before the Act, lenders commonly would not loan money to married women without their husband's consent, and only the husband's income was considered when a family sought credit.
The enactment of this law came during an era of civil rights advancements, closely following the Civil Rights Act of 1964, which had broad implications for ending segregation and discrimination in various public and private sectors. The Civil Rights Act also established the Equal Employment Opportunity Commission (EEOC) to enforce laws against employment discrimination.
As part of a broader movement towards equality, the Equal Credit Opportunity Act was put into action after evidence of blatant gender discrimination was brought to light within the banking system. It was a milestone that furthered the financial independence of women, ensuring that they could secure credit without the influence or consent of their male counterparts. The relief sought by feminists and activists against such gender biases eventually led to the Act's passage.