Although Tel-Law information is periodically reviewed, it is important for you to realize that changes may occur in this area of law. This information is not intended to be legal advice regarding your particular problem, and it is not intended to replace the work of an attorney.

If you do not have an attorney, the Oregon State Bar Lawyer Referral Service can help you. Online Lawyer Referral Service information and a fill-in form is available. Or you may contact the service by phone: The number to call from the Portland area is 503-684-3763 or toll-free from anywhere else in Oregon, 1-800-452-7636.

The following information regarding equal credit opportunity is brought to you as a public service by the lawyers of the State of Oregon. The material presented is intended to alert you to possible legal problems and solutions.

The Federal Equal Credit Opportunity Act prohibits businesses that extend consumer credit from discriminating against anyone because of race, color, religion, national origin, sex, marital status or age. The Equal Credit Opportunity Act also prohibits discriminating against anyone who receives welfare, social security, or other government benefits, or a person who has previously exercised his or her rights under other federal consumer protection laws. Likewise, a business cannot discriminate by increasing the cost of an item.

Nothing in this law requires a business to extend credit to anyone. The law only says that if a business is going to extend credit to anyone, the business must not treat some people differently than others because of race, color, religion, marital status, and so on.

This law contains specific rules that govern each of the steps in a typical credit transaction. The first step in a typical credit transaction involves the credit application. The Equal Credit Opportunity Act prohibits the creditor from making any statements, oral or written, or in advertisements, that would discourage a person from applying for credit because of race, color, religion, etc.

A business cannot discriminate because of marital status. Under most circumstances, a creditor cannot ask for information concerning your marital status. However, if you are using certain property to guarantee payment, the creditor may ask if you are married, unmarried, or separated. The creditor can also ask about marital status if your spouse will also use the credit or be liable for its repayment, or if you are relying upon the income of your spouse to repay the credit.

In addition, creditors may not ask you to give any information about your sex, race, color, religion, or national origin. A creditor can ask you for a title, such as Ms., Miss, Mr. or Mrs., as long as the creditor also states that this is optional. While a creditor may ask about the number and ages of the applicant's children or other dependents, the creditor cannot ask any questions regarding your birth control practices or intentions to have children. A creditor also cannot ask whether any part of your income comes from alimony or child support except in certain very narrow circumstances.

The second step in a credit transaction involves the creditor's evaluation of your credit application. Again, the law prohibits a creditor from using the information contained in a credit application to discriminate against you.

It should be noted that there are certain exceptions to the laws against discrimination. For example, your age can be considered by a creditor in the evaluation of the credit application. Also, while a creditor cannot base a decision to grant or deny credit on whether you have a telephone listed in your name, a creditor may consider whether or not there is a telephone in your home.

Creditors who evaluate your credit history must consider your entire credit history, including information on accounts that, though carried in the name of another person, indicate your creditworthiness. An example would be an account that was carried in the name of your former spouse, but you paid part or all of the bills. Also, if you give the creditor information that shows that the credit history is inaccurate, the creditor must take this new information into account.

The law also establishes a number of rules concerning extensions of credit. Once again, the goal of these rules is not to require that credit be granted, but rather to require that if it is granted, that it is done in a fair and nondiscriminatory manner.

For example, a creditor cannot refuse to grant women credit unless their husbands also sign the loan or purchase agreement. The law now provides that if the creditor would open an individual credit account for a male applicant, the creditor must do the same for a similarly qualified female applicant.

It is important to remember that this rule applies only if you are "creditworthy," that is, you, standing alone, meet the creditor's standards of income and other factors. An example of when a creditor may require the signature of your spouse or another person is when you are relying on another person’s property to show that you will be able to make the payments, or you are relying on another person’s property as a guarantee for payment.

Once credit has been granted, the law prevents a creditor from changing the credit terms of the agreement. Unless there is evidence of unwillingness or inability to pay, the law prohibits a creditor from terminating the account, or requiring a reapplication, if you have reached a certain age or retired, or have changed your name or marital status.

While a creditor may not cancel an agreement with you if you become divorced, merely because the divorce has occurred, a creditor may require a reapplication because of the change in marital status. This may be required if the credit agreement was based on your spouse’s income, and if your income alone, at the time of the initial application, would not have been enough to support the amount of credit currently being extended under the account.

The final step in a credit application concerns the creditor's responsibilities to you when your application has been denied or when credit is offered but is different from what was originally requested. The law says that when you apply for credit, the creditor must notify you in writing if credit is denied or accepted, usually within 30 days after the creditor receives your application.

A creditor who violates the Equal Credit Opportunity Act may be liable to you for damages and attorney's fees. If you think that your rights under this law have been violated, or if you have any questions about this law, you should see an attorney. You also can call the Consumer Protection Division of the Oregon Attorney General's Office or the Seattle office of the Federal Trade Commission. Look in the blue section of your telephone book for the phone numbers.

This information is from the Oregon State Bar's Tel-law service, a collection of recorded legal information messages prepared by the lawyers of Oregon. In addition to being online, the Tel-law service is accessible by telephone at 503-620-3000 or toll-free in Oregon only, 1-800-452-4776. A touch tone phone allows direct access 24 hours a day, 7 days a week. To receive a free Tel-law brochure listing the subjects available call 503-620-0222, ext. 0.