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Credit

Mortgage Lending Discrimination

Fair Treatments in Credit Applications

Disability and Access to Credit

What is Credit Discrimination?

Individuals have the right to apply for and obtain credit without discrimination. Credit discrimination occurs when a person is treated differently because of a protected class when applying for loans, credit cards, or other financial services.

This may occur at any stage of the credit process, including:

  • Applying for credit
  • Reviewing financial information
  • Setting loan terms or interest rates
  • Approving or denying credit
  • Managing existing accounts

Credit decisions should be based on financial qualifications such as income, credit history, and ability to repay, not protected characteristics.

In most cases, a complaint must be filed within 180 days of the alleged discriminatory act.

Filing as soon as possible can help ensure that your complaint can be reviewed.

Protected Classes in Credit:

Credit discrimination may violate civil rights laws when it is based on a protected class.

Protected classes in credit may include:

  • Race
  • Color
  • Religion
  • Sex
  • Disability
  • National origin
  • Ancestry

Creditors may not treat applicants differently because of these characteristics.

Who Is Covered?

Credit discrimination laws may apply to individuals seeking or using credit, including:

  • Applicants for loans or credit cards
  • Individuals seeking mortgages or financing
  • Borrowers managing existing credit accounts

These protections help ensure equal access to financial services.

What Types of Credit Are Covered?

Civil rights protections may apply to many types of credit and financial services, including:

  • Mortgage loans
  • Car loans
  • Credit cards
  • Personal loans
  • Student loans
  • Retail financing programs

Creditors must apply their policies consistently and fairly.

Examples of Credit Discrimination:

Credit discrimination can take many forms. Examples may include:

  • Denying a loan because of a protected class
  • Charging higher interest rates based on a protected class
  • Offering different loan terms to similarly qualified applicants
  • Discouraging someone from applying for credit
  • Requiring additional documentation without a legitimate reason

Each situation is evaluated based on the specific facts and circumstances.

If You Believe You Experienced Credit Discrimination

If you believe you were treated unfairly when applying for or using credit because of a protected class, you may be able to file a discrimination complaint.

The Indiana Civil Rights Commission investigates complaints involving discrimination in credit, housing, employment, education, and public accommodations.

To learn more about filing a complaint, visit the How to File a Discrimination Complaint page.