Bill would prohibit credit discrimination against LGBT people

Democratic lawmakers have introduced legislation to prohibit creditors from discriminating against lesbian, gay, bisexual and transgender people.

The Freedom from Discrimination in Credit Act, which Sen. Patty Murray (D-Wash.) and Rep. Steve Israel (D-N.Y.) unveiled Wednesday, would amend the Equal Credit Opportunity Act and create a federal ban on credit discrimination based on sexual orientation and gender identity.  

The lawmakers said there is currently no federal law that protects LGBT individuals.

{mosads}“Securing credit is an important part of our economy and helps so many Americans looking to buy a home, go to college, or start a small business,” Murray said in a news release. “It is unacceptable that someone can be denied credit, simply because of their sexual orientation or gender identity.”

A total of 14 states and the District of Columbia prohibit credit discrimination based on sexual orientation and gender identity. Those states are California, Colorado, Connecticut, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, Rhode Island, Vermont and Washington. 

New York has a law that only prohibits against discrimination based on sexual orientation in credit transactions. It does not address gender identity.

“In many states, protections against discrimination for LGBT Americans are a patchwork at best and nonexistent at worst, including when it comes to fair and equal access to credit,” David Stacy, government affairs director of the Human Rights Campaign, said in a news release.