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- Published on Friday, 11 July 2014 11:45
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Applying For a Loan? You Are Protected By the Equal Credit Opportunity Act
Victory State Bank echoes federal law that prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, and more
People use credit to pay for education or a house, a remodeling job or a car, or to finance a loan to keep their business operating. If you are applying for a loan, Victory State Bank, Staten Island’s only community-based business bank, suggests you know your rights under federal law to ensure discrimination doesn’t play a role in a lender’s decision-making process.
The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Equal Credit Opportunity Act (ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance.
Creditors may ask you for most of this information in certain situations, but they may not use it when deciding whether to give you credit or when setting the terms of your credit. Not everyone who applies for credit gets it or gets the same terms: Factors like income, expenses, debts, and credit history are among the considerations lenders use to determine your creditworthiness.
The law provides protections when you deal with any organizations or people who regularly extend credit, including banks, small loan and finance companies, retail and department stores, credit card companies, and credit unions. Everyone who participates in the decision to grant credit or in setting the terms of that credit, including real estate brokers who arrange financing, must comply with the ECOA.
For a brief summary of the basic provisions of the ECOA, log onto: http://www.consumer.ftc.gov/articles/0347-your-equal-credit-opportunity-rights.
About Victory State Bank
VSB Bancorp, Inc. (OTCQB: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited onlinehttp://www.victorystatebank.com.