Under ECOA, what is prohibited regarding discriminatory items?

The prohibition under the Equal Credit Opportunity Act (ECOA) regarding discriminatory items specifically pertains to the use of these items in the decision-making process for loans. ECOA was established to ensure that all consumers have equal access to credit, irrespective of factors such as race, color, religion, national origin, sex, marital status, age, or because they receive public assistance.

When it comes to making or declining a loan, using discriminatory items could lead to unfair practices that perpetuate inequality in lending. Therefore, the law prohibits lenders from considering any characteristic that is unrelated to a person's creditworthiness and ability to repay when deciding whether to extend credit.

This focus on fairness and equal treatment is crucial for promoting inclusive practices among lenders, ensuring that all applicants are evaluated primarily based on their financial criteria rather than extraneous factors that shouldn't influence lending decisions.