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).… Continue Reading

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 manager.… Continue Reading

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 allow an applicant for credit who has no credit history, but who is or was married, to request that the creditor deem the applicant’s credit history to be identical to that of the applicant’s spouse during the marriage.… Continue Reading

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 violations of the Equal Credit Opportunity Act or the Fair Housing Act based on sexual orientation discrimination.… Continue Reading

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 their members concerning technical compliance with Regulation B in managing the large influx of PPP loan applications.… Continue Reading

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 activities, the letter on 2019 activities does not describe any 2019 FTC ECOA enforcement activity and only contains information about the FTC’s research and policy development efforts and educational initiatives.… Continue Reading

The three trade groups challenging an amendment to Nevada law that allows an applicant for credit with no credit history to request that the creditor deem the applicant’s credit history to be identical to that of the applicant’s spouse during the marriage have responded to the motion to dismiss their lawsuit filed by the Commissioner of the Financial Institutions Division (FID) of the Nevada Department of Business and Industry and the Nevada Attorney General. … Continue Reading

On October 29, 2019, the House Financial Services Subcommittee on Oversight and Investigations held a hearing to explore the issue of lending and housing discrimination against members of the LGBTQ+ community. A recording of the hearing is available here.

Six witnesses offered testimony and responded to questions posed by subcommittee members:

  • Harper Jean Tobin, Director of Policy, National Center for Transgender Equality
  • Michael Adams, Chief Executive Officer, SAGE
  • Dr.
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A purported class action filed last week in the U.S. District Court for the Northern District of California, accuses Facebook of discriminating against women and individuals over 40 who were denied advertisements and information about certain financial services opportunities, including those for bank accounts, insurance, and investing.

According to the complaint, Facebook encourages financial services advertisers to target specific populations in order to reach the most “relevant” group and the “kinds of people” the businesses consider to be their “best customers.” … Continue Reading

The Subcommittee on Oversight and Investigations of the House Committee on Financial Services has scheduled a hearing entitled “Financial Services and the LGBTQ+ Community: A Review of Discrimination in Lending and Housing.” The memo from the Committee’s Majority Staff to Committee Members states that the hearing “will focus on the extent and effects of discrimination against persons who identify as lesbian, gay, bisexual, transgender or queer (“LGBTQ+”) when seeking housing or credit in the United States.… Continue Reading