Thursday, November 26, 2020

CFPB seeks input on preventing credit discrimination

The Consumer Financial Protection Bureau issued a request for information seeking on ways to create a regulatory environment that expands access to credit and ensures consumers and communities are protected from discrimination in all aspects of credit transactions.

The bureau issued the RFI in lieu of a symposium it planned to host this fall on issues related to the Equal Credit Opportunity Act.

Specifically, the bureau is seeking comments on whether it should provide additional clarity or guidance on:

  • The CFPB’s approach to disparate impact analysis under ECOA and Regulation B.
  • Ways creditors may provide assistance, products or services to borrowers with limited English proficiency.
  • Special purpose credit programs.
  • Affirmative advertising to disadvantaged groups.
  • Meeting the credit needs of small business, particularly minority and women-owned firms.
  • The bureau’s interpretation of ECOA’s prohibition of discrimination on the basis of sex.
  • The scope of federal preemption of state law regarding ECOA and Reg. B.
  • Situations in which creditors seek to ascertain the continuance of public assistance benefits in underwriting decisions.
  • Credit underwriting when decisions are based in part on models using artificial intelligence or machine learning.
  • Adverse action notices.

Comments on the RFI are due 60 days after publication in the Federal Register.