If a borrower is denied credit, the lender is responsible for giving notice to the applicant and advise the rejected applicant of the federal agency that administers compliance with the Equal Credit Opportunity Act for that particular loan transaction. The statement must provide the specific reasons for the denial.
If a creditor fails to comply with the ECOA or accompanying federal regulations, the creditor can be subject to civil liability for damages. The court may also award court costs and reasonable attorney’s fees to an aggrieved applicant. |
