In a class action suit, what could be the maximum liability under ECOA?

The correct answer is $500,000, which represents the maximum liability under the Equal Credit Opportunity Act (ECOA) in a class action lawsuit. ECOA is designed to prevent discrimination in lending practices, ensuring that all individuals have equal access to credit regardless of race, color, religion, national origin, sex, marital status, or age.

In the context of class action lawsuits involving ECOA violations, the act stipulates specific damage caps based on the number of individuals affected. For class action suits, if the violation impacts a significant number of people, the maximum liability can reach up to $500,000. This amount is intended to provide a level of restitution and to deter future violations by lenders.

Understanding this maximum liability is crucial for compliance and legal practice in the mortgage industry, as it underscores the important consequences lenders may face if they fail to adhere to ECOA regulations.