Applying for Business Credit? - Know Your Rights

Do you need a loan to help develop or expand your business? Perhaps you'd like to start your own business and you need a loan to help with start-up costs. If so, you should know about a law that protects you against illegal discrimination in business credit. The Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating on the basis of certain factors unrelated to creditworthiness. The Better Business Bureau, along with the Federal Trade Commission, offers the following summary of what the law provides:

If you believe your rights have been violated, you may wish to seek legal advice. You have the right to sue a lender who violates the ECOA. If your complaint is about a governmental lender, public utility company, small loan and finance company, travel and expense credit card company, or other non-bank lender, you may wish to also contact the Federal Trade Commission, Correspondence Branch, Washington, DC 20580. Although the FTC cannot help you resolve your individual dispute, it may be able to provide you with some useful information and take enforcement action against the company if it is warranted.