CFPB Requests Information on How to Prevent Credit Discrimination

Aug 17, 2020Federal Regulation, Financial Literacy, News

Last month, the Consumer Financial Protection Bureau (CFPB) requested public input on the best ways to build a regulatory environment that expands consumer credit access and ensures that consumers are protected from discrimination. The request for information (RFI) comes in lieu of a symposium the Bureau had originally scheduled for this fall on Equal Credit Opportunity Act (ECOA) issues.

Currently, the ECOA and Regulation B prohibit creditors from discriminating against applicants on the basis of race, color, national origin, religion, age, sex, or marital status. It is also unlawful for creditors to discriminate if any part of the applicant’s income comes from a public assistance program, or if the applicant has exercised any right under the Consumer Credit Protection Act.

“The Bureau seeks comments on the actions it can take or should consider taking to prevent credit discrimination, encourage responsible innovations, promote fair, equitable, and nondiscriminatory access to credit, address potential regulatory uncertainty, and develop viable solutions to regulatory compliance challenges under ECOA and Regulation B,” the RFI reads.

The Bureau requested comments concerning matters such as disparate impact, limited English proficiency, affirmative advertising to disadvantaged groups, small business lending, public assistance income, and more.

“The Bureau anticipates that the responding public may include (among others) financial entities or institutions and their service providers; trade associations that represent those entities; individual consumers; fair lending, civil rights, consumer and community advocates; Federal, Tribal, State, and local regulators and agencies; researchers or members of academia; or attorneys that represent any of the above,” the RFI reads.

Any information obtained will help the CFPB address regulatory compliance difficulties and fulfill its core mission to foster innovation and protect consumer against unlawful discrimination.

Click here to read the RFI.

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