Discrimination has no place in the modern world. At least that is what we are conditioned to believe. But now and then, a news headline would pop up that implies some sort of discrimination being practiced in some part of the country or the world. It can be in the form of race, gender, age, religion, or even looks. It’s a good thing that credit discrimination is against the law. There are steps that you can take to pursue justice when you feel that you have not been given a fair treatment due to be discriminated.
Different states and territories have different legal systems. You should consult your own loacal attorney when dealing with legal matters.
A lender has that right to give out loans to whoever they want. It is their money after all, and they have a bottom line to look after. But their basis of credit evaluation should be based on verifiable things like debt liability, personal income, household expenses, repayment histories, etc. Here are some rules they are expected to adhere to.
– They can be no form of discrimination at all including those relating to marital status, gender, race, nationality, etc.
– Age cannot be a determining factor unless
- The client is not old enough to sign a legally binding contract
- It shows favor to elders age 62 or older
- It is a related determinant of income
– Things like alimony, child support, pension, annuity plans, social security, retirement cannot be refused for consideration by an analyst.
Loan rejected because I’m not vegetarian?!
Dealing with it
Should you find that you have somehow become a victim of credit discrimination, you can either walk away or protect your rights. Here are some basic steps you can take.
- Inform the creditor that you know your rights and you just want to be treated fairly. If the lender did knowingly made you a victim, they might just correct their behaviour quickly to rectify the situation. And if they had no intention to treat your unfairly, they might also take action so that you do not continue to misunderstand them. No financial institution will want to be on the pointed end of a discriminating news story.
- Contact the state attorney to get a legal opinion on whether your rights have truly been violated. Often times, we can feel mistreated when we were actually not. We were just too sensitive. A legal expert should be able to quickly see if there is a case to be heard.
- Report the incident to the relevant government agencies. It could be unclear what they might do about it. But at least you could be on record with a relevant authority. The creditor should be able to provide you with the relevant contact information of these agencies if you request for it.
- If after consulting with a lawyer, you are advised that you have a real case, take it to the federal district court. Seeking damages is an action you can consider.
- Make contact with others who have had the same bad experience as you. Hire a capable lawyer and file a class action suit. With a good number of victims as a group, it could be an indication that these are not isolated incidents and there are deep problems within the organization.
Remember that even though you could feel very strongly about the bad experience you went through, it could also easily be a case where you were thinking too much and reading too much into non-verbal signals. Sometimes we do things with intentions that can be misread by our friends and family members. If this can happen at home, they can happen anywhere else. Don’t drag someone through the mud just because you have the opportunity to.