The CFPB explained that this interpretive rule is both consistent with Bostock and supported by many of the public comments received in response to the ECOA RFI. Responding to this decision, in part, the CFPB issued a request for information on July 28, 2020, to solicit public comments and information to identify opportunities to prevent credit discrimination and encourage responsible innovation under the ECOA and Regulation B. In Bostock, the Supreme Court held that the prohibition against sex discrimination in Title VII of the Civil Rights Act of 1964 encompasses sexual orientation discrimination and gender identity discrimination. The CFPB stated that it believes the interpretive rule aligns with the US Supreme Court’s understanding of sex discrimination under Title VII, which was announced in Bostock v.

The ECOA makes it “unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction,” including “on the basis of…sex.” 1 Similarly, Regulation B prohibits a creditor from discriminating against an applicant on a prohibited basis, including “sex.” 2 Based on the “straightforward application of legal terms with plain and settled meanings,” 3 and its own expertise in administering the ECOA and Regulation B, the CFPB concluded that “on the basis of sex” includes sexual orientation and gender identity. On March 9, the CFPB issued an interpretive rule to clarify that the prohibition against sex discrimination under the Equal Credit Opportunity Act and implementing Regulation B extends to discrimination involving sexual orientation and gender identity. Individual complaints of discrimination are handled by the agencies which regulate the individual creditor.The US Consumer Financial Protection Bureau continues to focus on fair lending and is poised to increase enforcement actions. Individuals who believe that they have been victims of an illegal housing lending practice, such as the denial of a mortgage, that involved credit may file a complaint with HUD.

If you have information that suggests a pattern or practice of discrimination in credit, please write to the Housing and Civil Enforcement Section. If you believe that you have been the victim of illegal discrimination with regard to credit, the Department of Justice may initiate a lawsuit where it has reason to believe that a creditor is engaged in a “pattern or practice” of discrimination. In addition to paying compensation to victims denied credit, the settlement requires the implementation of a comprehensive change in policies and provision of fair-lending training to employees. Fidelity Federal Bank, the Department reached a settlement with a bank in a case alleging, among other violations of ECOA, that the bank collected data on credit applicants’ religious affiliation. The Civil Rights Division’s Housing and Civil Enforcement Section enforces the Equal Credit Opportunity Act (ECOA), which prohibits discrimination against persons seeking home mortgages or other credit based on race, color, religion, national origin, sex, marital status, or age, or because an applicant receives income from a public assistance program.įor example, in United States v.

Ecoa prohibits discrimination based on