Washington DC – The Consumer Financial Protection Bureau (CFPB) and the Department of Justice today reminded financial institutions that all credit applicants are protected from discrimination based on national origin, race, and other characteristics under the Equal Credit Opportunity Act. A joint statement was issued to remind the public. Regardless of residence status. The CFPB and the Department of Justice issued this statement because many people are denied credit cards, auto, student, personal, and equipment loans because of their immigration status, even if they have a strong credit history or ties to the United States. This is because consumers are reporting that. In addition, be eligible for financing.
Although the Equal Credit Opportunity Act allows creditors to consider an applicant’s immigration status when necessary to confirm the creditor’s rights regarding repayment, creditors may It should be recognized that reliance on qualifications (including when such reliance is based on prejudice) may be in conflict. of the law.
CFPB Director Rohit Chopra said, “Equitable access to credit is critical to building wealth and strengthening household financial stability.” “The CFPB will not allow companies to use immigration status as an excuse for unlawful discrimination.”
“Lenders should not deny people the opportunity to obtain a loan to buy a home, start a business, or achieve other financial goals based on unlawful prejudice, ignoring their actual ability to repay. ” said Assistant Attorney General Kristen Clark. Department of Justice, Civil Rights Division. “This guidance reminds lenders that denying someone access to credit based solely on their actual or perceived immigration status may violate federal law.”
Some financial institutions maintain blanket policies denying credit to individuals based on immigration status, regardless of the individual’s circumstances or ability to repay, and the Equal Credit Opportunity Act and the regulations that enforce it are , which claims to protect individuals whenever their immigration status is considered. When making credit decisions. Some have also falsely argued that the law protects lenders from liability under other federal and state civil rights laws that prohibit discrimination based on immigrant or noncitizen status.
The joint statement states that the Equal Credit Opportunity Act allows creditors to take into account immigration status when necessary to confirm the creditor’s rights to repayment, but that it does not require unnecessary or extensive reliance on immigration status. It explains that doing so may violate the law’s prohibition on discrimination based on national origin, race, or ethnicity. Another basis for prohibition. The joint statement also confirms that neither the Equal Credit Opportunity Act nor its regulations provide companies with security with respect to other laws prohibiting discrimination on the basis of immigration status.
Read today’s joint statement.
Read the CFPB blog.
Consumers can file complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372). On the phone he is available in over 180 languages.
Employees who believe their company is violating the Federal Consumer Financial Protection Act are encouraged to send information they know to whistlebwer@cfpb.gov. For more information about reporting potential misconduct in the industry, visit his website at the CFPB.
The Consumer Financial Protection Bureau (CFPB) helps consumer financial markets function by making rules more effective, enforcing them consistently and fairly, and giving consumers more control over their financial lives. It is a 21st century institution. For more information, please visit: www.consumerfinance.gov.
