The Consumer Financial Protection Bureau (CFPB) has announced a new effort to fight credit discrimination. In a new compliance bulletin, the CFPB says that it is also reaffirming its commitment to enforcing the Equal Credit Opportunity Act by recognizing the effects of disparate impact, which it defines as lending practices or policies that are ‘facially neutral but have discriminatory effects.’
‘We want consumers to avoid the marketplace's silent pickpocket – discrimination,’ says CFPB Director Richard Cordray. ‘We cannot afford to tolerate practices, intentional or not, that unlawfully price out or cut off segments of the population from the credit markets. That's why the CFPB is educating consumers about their fair lending rights and pursuing lenders whose practices are discriminatory.’
The CFPB's compliance bulletin can be accessed online.