The Biden administration is moving to force financial institutions to forego typical loan qualifying requirements when dealing with illegal immigrants.
Concerns have been expressed that the loan qualification guidelines will lead lenders to incur losses that will be passed on to American citizens.
Overriding the concerns, the Equal Credit Opportunity Act (ECOA), the Justice Department and the Consumer Financial Protection Bureau (CFPB) issued a joint statement on Wednesday, warning financial institutions that “all credit applicants are protected from discrimination on the basis of their national origin, race and other characteristics covered by the (ECOA), regardless of their immigration status.”
CFPB and DOJ issue joint statement on consideration of immigration status under ECOA but omit clear guidance https://t.co/CV2qoxUv22 #CFPB
— CFPB Watch (@CFPB_Watch) October 17, 2023
The Department of Justice Office of Public Affairs issued a statement noting that “consumers have reported being rejected for credit cards as well as for auto, student, personal and equipment loans because of their immigration status, even when they have strong credit histories and ties to the United States and are otherwise qualified to receive the loans.”
The statement quotes Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and warned: “Lenders should not deny people the opportunity to take out a loan to buy a home, build their businesses or otherwise pursue their financial goals because of unlawful bias and without regard to their actual ability to repay.”
“This guidance reminds lenders that denying someone access to credit based solely on their actual or perceived immigrant status may violate federal law.”
Consumer Financial Protection Bureau Director Rohit Chopra said: “Fair access to credit is crucially important for building wealth and strengthening household financial stability. The CFPB will not allow companies to use immigration status as an excuse for illegal discrimination.”
The Department of Justice Office of Public Affairs’ statement noted that “The Civil Rights Division enforces federal laws that protect individuals from discrimination based on your race, color, national origin, disability status, s*x, religion, familial status or loss of other constitutional rights.” Individuals who suspected a financial institution had violated these guidelines were advised to “submit a report using our online form.”
The joint statement encouraged immigrants who believe a financial institution had not treated them fairly to seek recourse via the CFPB’s website or by calling (855) 411-CFPB (2372). A whistleblower hotline was also noted in the statement.
The Epoch Times reported it was “unclear whether any banks or financial institutions intend to challenge the DOJ and CFPB’s interpretation of the law regarding the provision of loans to illegal immigrants.”
