What does the Equal Credit Opportunity Act prohibit?

The Equal Credit Opportunity Act (ECOA) is designed to ensure that all individuals have fair access to credit and lending opportunities regardless of certain factors such as race, color, religion, national origin, sex, marital status, or age. This act specifically prohibits discrimination in lending practices, ensuring that creditors make lending decisions based on an applicant's creditworthiness and financial capacity rather than personal characteristics unrelated to the ability to repay a loan.

By prohibiting discrimination, the ECOA aims to promote fairness in the financial system, allowing all people an equal opportunity to secure loans. This has profound implications for ensuring a more inclusive economy, helping to prevent practices that could lead to systemic inequality in accessing credit.

The other options relate to different issues within the realm of finance but do not accurately reflect the primary purpose of the Equal Credit Opportunity Act. High interest rates can result from a variety of market factors and do not fall under the prohibition of discrimination. Collapsing housing markets and unsecured loans for low-income borrowers involve different economic dynamics and regulations that are not specifically addressed by the ECOA. Thus, the correct answer centers on the act's core function of combating discrimination in lending practices.