An Act to amend title VII of the Consumer Credit Protection Act to include discrimination on the basis of race, color, religion, national origin, and age, and for other purposes.
PL 94-239 (H.R.6516), enacted 03/23/1976

PUBLIC LAW 94-239—MAR. 23, 1976 
90 STAT. 251 
Public Law 94-239 
94th Congress 
An Act 
To amend title VII of the (Consumer Credit Protection Act to include discrimina-
tion on the basis of race, color, religion, national origin, and age, and for 
other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assenibled^ That (a) this Act 
may be cited as the "Equal Credit Opportunity Act Amendments of 
1976". 
(b) Title VII of the Consumer Credit Protection Act is amended 
by adding at the end thereof the following new section: 
«§ 709. Short title 
"This title may be cited as the 'Equal Credit Opportunity Act'." 
(c) Section 501 of Public Law 93-4:95 is repealed. 
SEC. 2. Section 701 of the Equal Credit Opportunity Act is amended 
to read as follows: 
"§ 701. Prohibited discrimination; reasons for adverse action 
"(a) It shall be unlawful for any creditor to discriminate against 
any applicant, with respect to any aspect of a credit transaction— 
"(1) on the basis of race, color, religion, national origin, sex 
or marital status, or age (provided the applicant has the capacity 
to contract) ; 
"(2) because all or part of the applicant's income derives from 
any public assistance program; or 
"(3) because the applicant has in good faith exercised any 
right under the Consumer Credit Protection Act. 
"(b) It shall not constitute discrimination for purposes of this title 
for a creditor— 
"(1) to make an inquiry of marital status if such inquiry is for 
the purpose of ascertaining the creditor's rights and remedies 
applicable to the particular extension of credit and not to dis-
criminate in a determination of credit-worthiness; 
"(2) to make an inquiry of the applicant's age or of whether 
the applicant's income derives from any public assistance pro-
gram if such inquiry is for the purpose of determining the 
amount and probable continuance of income levels, credit history, 
or other pertinent element of credit-worthiness as provided in 
regulations of the Board; 
"(3) to use any empirically derived credit system which con-
siders age if such system is demonstrably and statistically sound 
in accordance with regulations of the Board, except that in the 
operation of such system the age of an elderly applicant may not 
be assigned a negative factor or value; or 
"(4) to make an inquiry or to consider the age of an elderly 
applicant when the age of such applicant is to be used by the 
creditor in the extension of credit in favor of such applicant. 
"(c) It is not a violation of this section for a creditor to refuse to 
extend credit offered pursuant to— 
" (1) any credit assistance program expressly authorized by law 
for an economically disadvantaged class of persons; 
Mar. 23, 1976 
[H.R. 6516] 
Equal Credit 
Opportunity Act 
Amendments of 
1976. 
15 u s e 1691 
note. 
Equal Credit 
Opportunity Act. 
15 
use 1691 
note. 
Repeal. 
15 
use 1691 
note. 
15 
use 
1691. 
15 
use 1601 
note. 
90 STAT. 252 
PUBLIC LAW 94-239—MAR. 23, 1976 
Notice. 
Statement of 
reasons. 
"Adverse 
action." 
15 use 1691b. 
Consumer 
Advisory Council. 
Establishment. 
" (2) any credit assistance program administered by a nonprofit 
organization for its members or an economically disadvantaged 
class of persons; or 
"(3) any special purpose credit program offered by a profit-
making organization to meet special social needs which meets 
standards prescribed in regulations by the Board; 
if such refusal is required by or made pursuant to such program. 
" ( d ) ( 1 ) Within thirty days (or such longei reasonable time as 
specified in regulations of the Board for any class of credit trans-
action) after receipt of a completed application for credit, a creditor 
shall notify the applicant of its action on the application. 
"(2) Each applicant against whom adverse action is taken shall be 
entitled to a statement of reasons for such action from the creditor. 
A creditor satisfies this obligation by— 
" ( A ) providing statements of reasons in writing as a matter 
of course to applicants against whom adverse action is taken; or 
" ( B ) giving written notification of adverse action which dis-
closes (i) the applicant's right to a statement of reasons within 
thirty days after receipt by the creditor of a request made within 
sixty days after such notification, and (ii) the identity of the 
person or office from which such statement may be obtained. Such 
statement may be given orally if the written notification advises 
the applicant of his right to have the statement of reasons con-
firmed in writing on written request. 
"(3) A statement of reasons meets the requirements of this section 
only if it contains the specific reasons for the adverse action taken. 
" (4) Where a creditor has been requested by a third party to make 
a specific extension of credit directly or indirectly to an applicant, 
the notification and statement of reasons required by this subsection 
may be made directly by such creditor, or indirectly through the 
third party, provided in either case that the identity of the creditor is 
disclosed. 
"(5) The requirements of paragraph (2), (3), or (4) may be satis-
fied by verbal statements or notifications in the case of any creditor 
who did not act on more than one hundred and fifty applications 
during the calendar year preceding the calendar year in which the 
adverse action is taken, as determined under regulations of the Board. 
"(6) For purposes of this subsection, the term 'adverse action' 
means a denial or revocation of credit, a change in the terms of an 
existing credit arrangement, or a refusal to grant credit in substan-
tially the amount or on substantially the terms requested. Such term 
does not include a refusal to extend additional credit under an existing 
credit arrangement where the applicant is delinquent or otherwise in 
default, or where such additional credit would exceed a previously 
established credit limit.". 
SEC. 3. (a) Section 703 of the Equal Credit Opportunity Act is 
amended— 
(1) by inserting " ( a ) " immediately before "The Board"; 
(2) by inserting after the second sentence thereof the following 
new sentence: "In particular, such regulations may exempt from 
one or more of the provisions of this title any class of transactions 
not primarily for personal, family, or household purposes, if the 
Board makes an express finding that the application of such pro-
vision or provisions would not contribute substantially to carry-
ing out the purposes of this title."; and 
(3) by adding at the end thereof the following new subsection: 
"(b) The Board shall establish a Consumer Advisory Council to 
advise and consult with it in the exercise of its functions under the 
PUBLIC LAW 94-239—MAR. 23, 1976 
90 STAT. 253 
Consumer Credit Protection Act and to advise and consult with it 
concerning other consumer related matters it may place before the 
Council. In appointing the members of the Council, the Board shall 
seek to achieve a fair representation of the interests of creditors and 
consumers. The Council shall meet from time to time at the call of the 
Board. Members of the Council who are not regular full-time employ-
ees of the United States shall, while attending meetings of such Coun-
cil, be entitled to receive compensation at a rate fixed by the Board, 
but not exceeding $100 per day, including travel time. Such members 
may be allowed travel expenses, including transportation and sub-
sistence, while away from their homes or regular place of business.". 
(b) (1) Section 110 of the Truth in Lending Act is repealed. 
(2) The table of sections of chapter 1 of such Act is amended by 
striking out item 110. 
SEC. 4. Section 704(c) of the Equal Credit Opportunity Act is 
amended by inserting before the period at the end thereof the follow-
ing: ", including the power to enforce any Federal Reserve Board 
regulation promulgated under this title in the same manner as if the 
violation had been a violation of a Federal Trade Commission trade 
regulation rule". 
SEC. 5. Section 705 of the Equal Credit Opportunity Act is 
amended— 
(1) by amending subsection (e) to read as follows: 
"(e) Where the same act or omission constitutes a violation of this 
title and of applicable State law, a person aggrieved by such conduct 
may bring a legal action to recover monetary damages either under 
this title 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."; 
and 
(2) by adding the following new subsections: 
"(f) This title does not annul, alter, or affect, or exempt any person 
subject to the provisions of this title 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 title, 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 
title if the Board determines that such law gives greater protection 
to the applicant. 
"(g) The Board shall by regulation exempt from the requirements 
of sections 701 and 702 of this title any class of credit transactions 
within any State if it determines that under the law of that State 
tliat class of transactions is subject to requirements substantially simi-
lar to those imposed under this title 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 
title for the purposes of section 706.". 
SEC. 6. Section 706 of the Equal Credit Opportunity Act is amended 
to read as follows: 
«§ 706. Civil liability 
"(a) Any creditor who fails to comply with any requirement 
imposed under this title shall be liable to the aggrieved applicant for 
any actual damages sustained by such applicant acting either in an 
individual capacity or as a member of a class. 
"(b) Any creditor, other than a government or governmental sub-
15 use 1601 
note. 
Repeal. 
15 use 1609. 
15 use 1601 et 
seq. 
15 use 1691c. 
15 use 1691d. 
15 use 1691, 
1691a. 
Infra. 
15 use 1691e. 
90 STAT. 254 
PUBLIC LAW 94-239—MAR. 23, 1976 
division or agency, who fails to comply with any requirement imposed 
under this title shall be liable to the aggrieved applicant for punitive 
damages in an amount not greater than $10,000, in addition to any 
actual damages provided in subsection (a), except that in the case of a 
class action the total recovery under this subsection shall not exceed 
the lesser of $500,000 or 1 per centum of the net worth of the creditor. 
In determining the amount of such damages in any action, the court 
shall consider, among other relevant factors, the amount of any actual 
damages awarded, the frequency and persistence of failures of com-
pliance by the creditor, the resources of the creditor, the number of 
persons adversely aflfected, and the extent to which the creditor's fail-
ure of compliance was intentional. 
"(c) Upon application by an aggrieved applicant, the appropriate 
United States district court or any other court of competent jurisdic-
tion may grant such equitable and declaratory relief as is necessary 
to enforce the requirements imposed under this title. 
"(d) In the case of any successful action under subsection (a), (b), 
or (c), the costs of the action, together with a reasonable attorney's 
fee as determined by the court, shall be added to any damages awarded 
by the court under such subsection. 
"(e) No provision of this title imposing liability shall apply to any 
act done or omitted in good faith in conformity with any official rule, 
regulation, or interpretation thereof by the Board or in conformity 
with any interpretation or approval by an official or employee of the 
Federal Reserve System duly authorized by the Board to issue such 
interpretations or approvals under such procedures as the Board may 
prescribe therefor, notwithstanding that after such act or omission 
has occurred, such rule, regulation, interpretation, or approval is 
amended, rescinded, or determined by judicial or other authority to be 
invalid for any reason. 
"(f) Any action under this section may be brought in the appropri-
ate United States district court without regard to the amount in con-
troversy, or in any other court of competent jurisdiction. No such 
action shall be brought later than two years from the date of the 
occurrence of the violation, except that— 
"(1) whenever any agency having responsibility for adminis-
15 use 1691c. 
trative enforcement under section 704 commences an enforcement 
proceeding within two years from the date of the occurrence of 
the violation, 
"(2) whenever the Attorney General commences a civil action 
under this section within two years from the date of the occur-
rence of the violation, 
then any applicant who has been a victim of the discrimination which 
is the subject of such proceeding or civil action may bring an action 
under this section not later than one year after the commencement of 
that proceeding or action. 
"(g) The agencies having responsibility for administrative enforce-
ment under section 704, if unable to obtain compliance with sec-
15 use 1691. 
tion 701, are authorized to refer the matter to the Attorney General 
with a recommendation that an appropriate civil action be instituted. 
"(h) When a matter is referred to the Attorney General pursuant 
to subsection (g), or whenever he has reason to believe that one or 
more creditors are engaged in a pattern or practice in violation of this 
title, the Attorney General may bring a civil action in any appropriate 
United States district court for such relief as may be appropriate, 
including injunctive relief. 
"(i) No person aggrieved by a violation of this title and by a 
42 use 3605. 
violation of section 805 of the Civil Rights Act of 1968 shall recover 
PUBLIC LAW 94-239—MAR. 23, 1976 
90 STAT. 255 
under this title and section 812 of the Civil Rights Act of 1968, if 
such violation is based on the same transaction. 
"(j) Nothing in this title shall be construed to prohibit the dis-
covery of a creditor's credit granting standards under appropriate 
discovery procedures in the court or agency in which an action or 
proceeding is brought,". 
SEC. 7. The Equal Credit Opportunity Act is amended by redesig-
nating section 707 as section 708 and by inserting immediately after 
section 706 the following new section: 
"§ 707. Annual reports to Congress 
"Not later than February 1 of each year after 1976, the Board and 
the Attorney General shall, respectively, make reports to the Con-
gress concerning the administration of their functions under this title, 
including such recommendations as the Board and the Attorney 
General, respectively, deem necessary or appropriate. In addition, each 
report of the Board shall include its assessment of the extent to which 
compliance with the requirements of this title is being achieved, and 
a summary of the enforcement actions taken by each of the agencies 
assigned administrative enforcement responsibilities under section 
704.". 
SEC. 8. Section 708 of the Equal Credit Opportunity Act is amended 
by adding at the end thereof the following new sentence: "The amend-
ments made by the Equal Credit Opportunity Act Amendments of 
1976 shall take effect on the date of enactment thereof and shall apply 
to any violation occurring on or after such date, except that the amend-
ments made to section 701 of the Equal Credit Opportunity Act shall 
take effect 12 months after the date of enactment.". 
SEC. 9. The table of sections of the Equal Credit Opportunity Act 
is amended by striking out 
"707. Effective date." 
and inserting in lieu thereof the following new items: 
"707. Annual reports to Congress. 
"708. Effective date. 
"709. Short title.". 
Approved March 23, 1976. 
42 use 3612. 
15 use 1691 
note. 
15 u s e 1691e. 
15 u s e 1691f. 
Effective dates. 
15 u s e 1691 
note. 
Ante, p. 251. 
15 u s e 1691. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-210 (eomm. on Banking, eurrency and Housing) and No. 
94-873 (eomm. of eonference). 
SENATE REPORT No. 94-589 (eomm. on Banking, Housing and Urban Affairs). 
eONGRESSIONAL REeORD: 
VoL 121 (1975): June 3, considered and passed House. 
VoL 122 (1976): Feb. 2, considered and passed Senate, amended. 
Mar. 9, Senate and House agreed to conference report. 
WEEKLY eOMPILATION OF PRESIDENTIAL DOeUMENTS: 
Vol. 12, No. 13 (1976): Mar. 23, Presidential statement. 
89-194 O—78—pt. 1 
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