The Equal Credit Opportunity Act (ECOA)
Sec. 1691c-1. - Incentives for self-testing and self-correction
(a) Privileged information
(1) Conditions for privilege. A report or result of a self-test (as that term is defined by regulations of the Board) shall be considered to be privileged under paragraph (2) if a creditor -
(A) conducts, or authorizes an independent third party to conduct, a self-test of any aspect of a credit transaction by a creditor, in order to determine the level or effectiveness of compliance with this subchapter by the creditor; and
(B) has identified any possible violation of this subchapter by the creditor and has taken, or is taking, appropriate corrective action to address any such possible violation.
(2) Privileged self-test
If a creditor meets the conditions specified in subparagraphs (A) and (B) of paragraph (1) with respect to a self-test described in that paragraph, any report or results of that self-test -
(A) shall be privileged; and (B) may not be obtained or used by any applicant, department, or agency in any -
(i) proceeding or civil action in which one or more violations of this subchapter are alleged; or
(ii) examination or investigation relating to compliance with this subchapter.
(b) Results of self-testing
(1) In general. No provision of this section may be construed to prevent an applicant, department, or agency from obtaining or using a report or results of any self-test in any proceeding or civil action in which a violation of this subchapter is alleged, or in any examination or investigation of compliance with this subchapter if -
(A) the creditor or any person with lawful access to the report or results -
(i) voluntarily releases or discloses all, or any part of, the report or results to the applicant, department, or agency, or to the general public; or
(ii) refers to or describes the report or results as a defense to charges of violations of this subchapter against the creditor to whom the self-test relates; or
(B) the report or results are sought in conjunction with an adjudication or admission of a violation of this subchapter for the sole purpose of determining an appropriate penalty or remedy.
(2) Disclosure for determination of penalty or remedy. Any report or results of a self-test that are disclosed for the purpose specified in paragraph (1)(B) -
(A) shall be used only for the particular proceeding in which the adjudication or admission referred to in paragraph (1)(B) is made; and (B) may not be used in any other action or proceeding.
(c) Adjudication. An applicant, department, or agency that challenges a privilege asserted under this section may seek a determination of the existence and application of that privilege in -
(1) a court of competent jurisdiction; or (2) an administrative law proceeding with appropriate jurisdiction
Sec. 1691d. - Applicability of other laws
(a) Requests for signature of husband and wife for creation of valid lien, etc. A request for the signature of both parties to a marriage for the purpose of creating a valid lien, passing clear title, waiving inchoate rights to property, or assigning earnings, shall not constitute discrimination under this subchapter: Provided, however, That this provision shall not be construed to permit a creditor to take sex or marital status into account in connection with the evaluation of creditworthiness of any applicant.
(b) State property laws affecting creditworthiness. Consideration or application of State property laws directly or indirectly affecting creditworthiness shall not constitute discrimination for purposes of this subchapter.
(c) State laws prohibiting separate extension of consumer credit to husband and wife. Any provision of State law which prohibits the separate extension of consumer credit to each party to a marriage shall not apply in any case where each party to a marriage voluntarily applies for separate credit from the same creditor: Provided, That in any case where such a State law is so preempted, each party to the marriage shall be solely responsible for the debt so contracted.
(d) Combining credit accounts of husband and wife with same creditor to determine permissible finance charges or loan ceilings under Federal or State laws. When each party to a marriage separately and voluntarily applies for and obtains separate credit accounts with the same creditor, those accounts shall not be aggregated or otherwise combined for purposes of determining permissible finance charges or permissible loan ceilings under the laws of any State or of the United States.
(e) Election of remedies under subchapter or State law; nature of relief determining applicability. Where the same act or omission constitutes a violation of this subchapter and of applicable State law, a person aggrieved by such conduct may bring a legal action to recover monetary damages either under this subchapter or under such State law, but not both. This election of remedies shall not apply to court actions in which the relief sought does not include monetary damages or to administrative actions.
(f) Compliance with inconsistent State laws; determination of inconsistency. This subchapter does not annul, alter, or affect, or exempt any person subject to the provisions of this subchapter from complying with, the laws of any State with respect to credit discrimination, except to the extent that those laws are inconsistent with any provision of this subchapter, and then only to the extent of the inconsistency. The Board is authorized to determine whether such inconsistencies exist. The Board may not determine that any State law is inconsistent with any provision of this subchapter if the Board determines that such law gives greater protection to the applicant.
(g) Exemption by regulation of credit transactions covered by State law; failure to comply with State law. The Board shall by regulation exempt from the requirements of sections 1691 and 1691a of this title any class of credit transactions within any State if it determines that under the law of that State that class of transactions is subject to requirements substantially similar to those imposed under this subchapter or that such law gives greater protection to the applicant, and that there is adequate provision for enforcement. Failure to comply with any requirement of such State law in any transaction so exempted shall constitute a violation of this subchapter for the purposes of section 1691e of this title.
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