Question

A company is required to take corrective action after conducting self-testing and discovering that a violation of the Equal Credit Opportunity Act (ECOA):

1. True
2. False

Answer 1

A company is required to take corrective action after discovering a violation of the Equal Credit Opportunity Act (ECOA). The given statement is true. Option 1

Step-by-step explanation:

The statement that a company is required to take corrective action after conducting self-testing and discovering a violation of the Equal Credit Opportunity Act (ECOA) is true.

The ECOA is a federal law that prohibits lenders from using factors such as gender, race, ethnicity, and age in making decisions regarding the extension of credit. If a company conducts self-testing and discovers a violation of the ECOA, it is legally obligated to take corrective action to rectify the violation.

For example, if a company discovers that it has been denying credit to individuals based on their race, it must take steps to stop this discriminatory practice and ensure equal credit opportunities for all individuals. Option 1