When enrolling new consumers, a credit monitoring company intentionally fails to disclose automatic renewal fee information to consumers who have Hispanic surnames. Other than UDAAP, which consumer protection law is violated in this scenario?

Answer 1

In this scenario, the credit monitoring company may be violating the Equal Credit Opportunity Act (ECOA). The ECOA prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because someone receives public assistance in any aspect of a credit transaction. By intentionally withholding information about automatic renewal fees from consumers with Hispanic surnames, the company may be engaging in discriminatory practices based on national origin.