Legislation that aims to protect individuals from discrimination in all credit transactions on the basis of sexual orientation and gender identity was introduced recently by Reps. Steve Israel, D-N.Y., and Barney Frank, D-Mass.
Under the current Equal Credit Opportunity Act, lenders are prohibited from discriminating in any credit transaction based on an individual's race, color, religion, national origin, sex, marital status, age or whether he or she receives public assistance. The recently introduced bill, known as the Freedom from Discrimination in Credit Act, adds sexual orientation and gender identity to that list.
"In the last year, Americans have become painfully aware that our economy depends on the ability to secure credit—small businesses, students, homeowners and consumers all need it to grow and prosper," Israel said. "In these tough economic times, the last thing that anyone should have to worry about when applying for a loan or credit card is their sexual orientation or gender identity getting in the way. That's why I'm introducing a bill to prohibit lenders from denying someone credit because they're lesbian, gay, bisexual or transgender."
A number of key lending activities are covered by the current law and by the proposed Freedom from Discrimination in Credit Act, including borrowing for student loans, mortgages, small business loans, personal loans, and credit card transactions.
With 44 original co-sponsors in the U.S. House, the bill has been endorsed by the National Gay & Lesbian Chamber of Commerce (NGLCC), Human Rights Campaign, National Center for Transgender Equality, National Center for Lesbian Rights and National Gay and Lesbian Taskforce.
"It makes sense for Congress to move swiftly to extend these protections to LGBT individuals," said Justin Nelson, co-founder and president of the NGLCC. "Every person in America deserves to have equal access to credit, whether it is for a mortgage to buy a home or a student loan to attend college. Congress needs to act to ensure there is fairness in lending."
The bill now faces review in the House Committee on Financial Services, which is chaired by Rep. Frank.
