True or False? The Equal Credit Opportunity Act prohibits discrimination based on sexual orientation.

The correct response is based on the specific provisions of the Equal Credit Opportunity Act (ECOA). The ECOA prohibits discrimination in credit based on several protected characteristics, including race, color, religion, national origin, sex, marital status, and age. However, sexual orientation is not explicitly listed as a protected characteristic under this federal law. As a result, the statement that the ECOA prohibits discrimination based on sexual orientation is false.

While there may be certain state laws that do offer protections against discrimination based on sexual orientation in lending practices, such provisions are not encompassed by the ECOA itself. Therefore, indicating that the statement is false accurately reflects the scope of the ECOA's protections.