Florida Broker Practice Exam

Which government agency enforces the Equal Credit Opportunity Act (ECOA)?

1. Securities and Exchange Commission

2. Federal Trade Commission

3. Consumer Financial Protection Bureau

4. Department of Housing and Urban Development

The correct answer is: Federal Trade Commission

The Consumer Financial Protection Bureau (CFPB) is the correct agency responsible for enforcing the Equal Credit Opportunity Act (ECOA). The ECOA is a federal law designed to ensure that all consumers have fair access to credit without discrimination based on race, color, religion, national origin, sex, marital status, or age. The CFPB was established in response to the financial crisis of 2007-2008 with a mission to protect consumers in the financial sector, which includes overseeing compliance with various financial laws, including the ECOA. The Bureau has the authority to implement regulations, supervise financial institutions, and take enforcement actions against any entity that violates the provisions of the ECOA. The other agencies listed have specific roles in government but are not responsible for enforcing the ECOA. The Securities and Exchange Commission primarily oversees securities markets, the Federal Trade Commission focuses on antitrust and consumer protection in a broader sense, and the Department of Housing and Urban Development primarily deals with housing and urban development issues, although it does have some involvement with fair housing laws.