Published: March 2012

Potential violation of Equal Credit Opportunity Act

Coalition objecting to FHA policy requiring applicants to pay off disputed accounts

Consumer Action joined coalition efforts in asking CFPB to intervene regarding the Federal Housing Administration’s new policy requiring mortgage applicants to pay off disputed accounts.

The Federal Housing Administration has new policy requiring mortgage applicants to pay off disputed accounts over $1,000 that are on the applicants' credit report, even if the dispute is pursuant to federal consumer laws (Fannie and Freddie may have a similar policy). This may violate the intent of the Equal Credit Opportunity Act's prohibition against retaliation for exercise of rights under the Consumer Credit Protection Act (which includes the Truth in Lending Act, Fair Credit Reporting Act, Fair Debt Collection Practices Act, among others).

Lead Organization

National Consumer Law Center (NCLC)

Other Organizations

National Consumer Law Center | Consumer Action | Privacy Times | National Association of Consumer Advocates

Download PDF

Potential violation of Equal Credit Opportunity Act   (CFPB_re_FHA.pdf)

 
 

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