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What Can Lenders Do to Fight Racial Discrimination? Tell CFPB

The federal consumer group (CFPB) wants suggestions on things it can do to end loan discrimination. While it’s illegal, CFPB cites “regulatory compliance challenges.”

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) issued a request for information (RFI). It wants public input on ways to create a regulatory environment that expands access to credit and ensures that all consumers and communities are protected from discrimination.

Discrimination is already illegal under the Equal Credit Opportunity Act (ECOA) and Regulation B on the basis of race, color, religion, national origin, sex, marital status or age. The law also bans discrimination if all or part of the applicant’s income comes from a public assistance program, or because the applicant exercised any right in good faith under the Consumer Credit Protection Act.

However, CFPB is exploring ways to make sure those laws are upheld, and it hopes comments from the public will help it achieve that goal. It says the “information provided will help (it) continue to explore ways to address regulatory compliance challenges while fulfilling (its) core mission to prevent unlawful discrimination and foster innovation.”

The RFI replaces a symposium CFPB had planned.

The RFI, including information on how to comment, is posted online.

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