Equal Credit Opportunity Act (ECOA) update.(Special Legislative Update)

Business Credit, May, 2004 by Wise, Jim

The Federal Reserve Board (FRB), has finally published its new rules amending Regulation B of the ECOA. These new rules are consistent with the FRB's policy of periodically reviewing and updating its regulations. While these new regulations became effective on April 15, 2003, the mandatory compliance date was April 15, 2004. Among the specific provisions of the ECOA of immediate interest to unsecured business credit grantors are: the treatment for noticing of adverse actions, timeliness of noticing, record retention requirements, and signature of spouses or other persons.

The ECOA makes it unlawful for a creditor to discriminate against an applicant in any aspect of a credit transaction on the basis of an applicant's national origin, marital status,...