The joint statement issued by the Consumer Protection Finance Bureau (CFPB) and Justice Department has outlined that financial institutions may not use immigration status to illegally discriminate against credit applicants. Some consumers have reported being rejected for loans on the basis of immigration status, even though they are otherwise qualified for the loan. The joint statement reminds financial institutions that the Equal Credit Opportunity Act (ECOA) protects all credit applicants from discrimination on the basis of their national origin, race, and other covered characteristics. Creditors may consider an applicant’s immigration status regarding repayment status but should be aware that unnecessary reliance on immigration status in the credit decision making process could violate antidiscrimination laws.
Follow the link below to view the press release:
https://files.consumerfinance.gov/f/documents/cfpb-joint-statement-on-fair-lending-and-credit-opportunities-for-noncitizen-b_jA2oRDf.pdf
Author: Kyle Tucker
Follow the link below to view the press release:
https://files.consumerfinance.gov/f/documents/cfpb-joint-statement-on-fair-lending-and-credit-opportunities-for-noncitizen-b_jA2oRDf.pdf
Author: Kyle Tucker
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