Which federal law requires lenders to make credit equally available without discrimination?

The Equal Credit Opportunity Act (ECOA) is the federal law designed to ensure that all consumers have equal access to credit, regardless of race, color, religion, national origin, sex, marital status, or age. This legislation was enacted to prevent discrimination in lending practices, making it illegal for lenders to deny credit based on these protected characteristics.

The ECOA mandates that lenders evaluate applications based solely on creditworthiness and not on the personal biases that could affect decisions. Its purpose is to promote fairness in the credit market, ensuring that everyone has a fair chance at obtaining loans and credit services.

In contrast, while other laws like the Fair Housing Act also address discrimination, they primarily focus on housing-related transactions, specifically prohibiting housing discrimination rather than directly regulating credit availability. The Real Estate Settlement Procedures Act focuses on transparency in the closing process for real estate transactions, and the Truth in Lending Act deals with allegations of disclosures regarding the cost of borrowing rather than directly addressing credit discrimination. Therefore, the correct answer neatly aligns with the mandates of the ECOA.