Question

what were the arguments for and against the equal credit opportunity act?

Answer 1

Arguments for equal credit opportunity act-

A. Equal credit opportunity act will be treating everybody similar and providing them with the equal opportunity of getting the credit

B. equal credit opportunity act will also be reducing inequality of income in various social groups

C. Equal credit opportunity act will also lead to elimination of discrimination from the process of credit availability

D. Organisations that are trying to discriminate on any basis will be brought to justice by department of justice

E. This act will be prohibiting the Financial institutions to consider any non creditworthiness factor in providing loan to various individual.

There are various arguments against equal credit opportunity act-

A. This act will be leading to forced loan to various low creditworthy individuals and they are highly prone to default.

B. This was also deemed to be an act which is against the independence of credit organisations

C. Various personal factors about type and nature of spending along with section of society can be leading to a good creditworthiness factor when determination of the overall creditworthiness of an individual and this act will not with taking them into consideration

D. Penalization of the credit organisation was heavily criticized.