New rules for fair access to credit and loans
This law introduces new measures to prevent discrimination when applying for credit and loans. It establishes a special office to test lending practices for fairness and expands the list of prohibited discrimination bases, including zip code and gender identity. It also introduces stricter penalties, including criminal ones, for violating these rules.
Key points
A new office is created to check if banks and lending companies discriminate against customers, using 'mystery shoppers' for testing.
The ban on discrimination in granting credit will now also include zip code, census tract, sexual orientation, and gender identity.
Knowingly violating fair lending rules will result in financial penalties and even imprisonment, including for company executives.
The Consumer Financial Protection Bureau will review loan applications and processes for discrimination.
Additional data, such as zip code and gender identity, will be collected when gathering mortgage data to better detect discrimination, while protecting privacy.
Expired
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