What is the primary purpose of the Equal Credit Opportunity Act (ECOA)?

The primary purpose of the Equal Credit Opportunity Act (ECOA) is to ensure that all consumers are provided equal access to credit without discrimination based on specific protected characteristics such as race, color, religion, national origin, sex, marital status, age, or because they receive public assistance. The act was enacted to promote fairness in lending practices, ensuring that credit decisions are made based on the applicant's creditworthiness rather than personal attributes or demographic factors.

By establishing this principle of non-discrimination, ECOA helps to create an equitable lending environment which allows individuals and groups that have been historically marginalized or underserved to obtain credit. This is crucial for promoting economic equality and empowering consumers to contribute to their communities.

The other options do not align with the core intention of ECOA. Limiting credit for high-risk borrowers focuses on credit risk management, while protecting lenders from defaults relates more to risk mitigation rather than equal access to credit. Establishing minimum credit score requirements pertains to qualification metrics rather than the non-discrimination philosophy underlying the ECOA.