Freedom from Discrimination in Credit Act
The Problem
Securing credit is critical to some of the most important undertakings in life, including buying a home, going to college, or starting a small business. Credit decisions should not be based on personal characteristics, such as race and sex, that are unrelated to creditworthiness and our nation’s civil rights laws reflect that. However, there is no federal law that consistently protects lesbian, gay, bisexual and transgender (LGBT) people from credit discrimination, and it remains legal in many states to discriminate based on sexual orientation and gender identity. As a result, in many places, LGBT people can still be denied a mortgage, credit card, student loan, or other type of lending simply because of who they are.
What is the Freedom from Discrimination in Credit Act?
The Freedom from Discrimination in Credit Act (FDCA) would amend the Equal Credit Opportunity Act (ECOA) to prohibit discrimination in the provision of credit based on sexual orientation or gender identity. FDCA simply extends the basic protections afforded under ECOA to LGBT Americans.
States’ Experience
Thirteen states and the District of Columbia have passed laws prohibiting credit discrimination generally based on sexual orientation, and another two states prohibit such discrimination only in real estate financing. Nine states and DC prohibit gender identity-based discrimination in credit transactions generally, with another two prohibiting discrimination in financial transactions related to real estate.
Action in the 112th Congress
The FDCA was introduced in the 112th Congress in the House by Rep. Steve Israel (D-NY) on April 12, 2011.
What is the Current Status of the Bill?
The FDCA is expected to soon be reintroduced in the 113th Congress.
For more information, please contact legislation@hrc.org.
Last Updated: January 3, 2013