Law Commons^™

The Ecoa And Disparate Impact Theory: A Historical Perspective, Winnie F. Taylor

Journal of Law and Policy

The Equal Credit Opportunity Act (“ECOA”) prohibits credit discrimination because of sex, marital status, race, age, and other personal attributes. Congress enacted the ECOA in 1974 to eliminate unfair lending practices that inhibit equality in the credit industry. Recently, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) sued several automobile financiers and alleged ECOA violations in the various complaints; the resulting settlements became controversial when critics questioned the CFPB’s use of an evidentiary standard known as “disparate impact” to support its discrimination claims. While plaintiffs may use disparate impact theory to prove unintentional discrimination, they may also use another analytical …