What is the time limit for a borrower to sue for a violation of the Equal Credit Opportunity Act?

The correct answer is that a borrower has a time limit of 24 months to sue for a violation of the Equal Credit Opportunity Act (ECOA). According to the ECOA, a borrower must file legal action within this two-year period if they believe their rights have been violated. This statute of limitations is designed to ensure that claims are made in a timely manner, allowing for fair and efficient resolution of disputes related to discrimination in credit transactions.

Understanding this timeframe is crucial for borrowers who may feel they have been subjected to unfair lending practices, as it imposes a specific deadline by which they must take action. Familiarity with the 24-month limit can help borrowers make informed decisions regarding their rights and remedies under the ECOA.