On December 21, 2020, the CFPB issued an advisory opinion that addresses regulatory uncertainty related to certain aspects of special purpose credit programs (“SPCPs”) designed and implemented by for-profit organizations. The advisory opinion was issued as an interpretive rule that will be published in the Federal Register and therefore is exempt from the notice and
ECOA
CFPB and FTC file joint amicus arguing consumers not applying for credit are “applicants” under ECOA
The CFPB and FTC have filed a joint amicus brief in the U.S. Court of Appeals for the Second Circuit urging the court to reverse a district court ruling that an individual who had already received credit from the defendant and who was not currently applying to the defendant for credit was not an “applicant”…
CFPB extends comment period for RFI on expanding credit access and further protecting consumers from credit discrimination
The CFPB has extended by 60 days the comment period for its Request for Information (RFI) on how best to create a regulatory environment that expands access to credit and ensures that all consumers and communities are protected from discrimination in all aspects of a credit transaction. Originally set to expire on October 2, the…
CFPB Issues Request for Information on Expanding Access to Credit and Further Protecting Consumers from Credit Discrimination
On July 28, 2020, the CFPB issued a request for information (“RFI”) seeking public input on how best to create a regulatory environment that expands access to credit and ensures consumers and communities are protected from discrimination in all aspects of credit transactions. The Bureau issued the RFI in lieu of a symposium it had…
CFPB Files First Ever Redlining Complaint Against a Non-Bank Mortgage Lender
On July 15, 2020, the CPFB filed a complaint in federal court against Townstone Financial, Inc. (Townstone) representing the first ever redlining complaint against a non-bank mortgage lender. The complaint is brought under the Equal Credit Opportunity Act (ECOA) and Consumer Financial Protection Act (CFPA), but not the Fair Housing Act (FHA). (The U.S. Department…
DOJ settles ECOA claims against Maryland used car dealership
The Department of Justice recently announced that it had settled a lawsuit filed in 2019 that alleged a Maryland used car dealership discriminated against African Americans in violation of the Equal Credit Opportunity Act by offering different credit terms based on race. The settlement includes the DOJ’s claims against the dealership’s individual owner and its…
Lawsuit by 3 trade groups challenging Nevada spousal credit history law dismissed
A federal District Court judge in Nevada has dismissed a case filed by several trade associations against the Commissioner of the Financial Institutions Division (“FID”) of the Nevada Department of Business and Industry and the Nevada Attorney General. The case was brought in response to a 2019 amendment (SB 311) that changed Nevada law to…
SCOTUS decision on Title VII sexual orientation discrimination has significant implications for credit arena
Earlier this week, in Bostock v. Clayton County, Georgia, the U.S. Supreme Court ruled that firing an employee for being homosexual or transgender constitutes discrimination based on the employee’s sex in violation of Title VII of the Civil Rights Act. The decision is likely to be relied on by regulators and private plaintiffs alleging…
CFPB issues guidance on compliance with ECOA/Reg B notice requirements for PPP loan applications
On May 6, 2020, the CFPB issued an ECOA/Regulation B “Compliance Aid” containing three FAQs that clarify certain issues related to notification of action taken on Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loan applications. We understand that the Bureau provided the guidance in response to inquiries from banking trade associations on behalf of…
FTC sends annual ECOA report to CFPB
FTC has sent its annual letter to the CFPB reporting on the FTC’s activities related to compliance with the Equal Credit Opportunity Act and Regulation B.
The FTC has authority to enforce the ECOA and Reg. B as to nonbank providers within its jurisdiction. However, like several of the FTC’s prior letters on its ECOA…