In an important step towards the recognition of LGBTQ+ rights in the financial sector, Minnesota has broadened the scope of its fair lending statute. The amendment, which took place recently, has made it unlawful for lending institutions to discriminate against individuals seeking credit extension or meeting credit requisites based on gender identity.
Prior to this, the Minnesota fair lending statute disallowed credit discrimination against persons on the groundwork of “race, color, creed, religion, disability, national origin, sex, sexual orientation, or marital status. It also severely prohibited inequity due to the receipt of federal, state, or local public assistance including medical. However, the statute did not originally include provisions against discrimination on the grounds of gender identity specifically.
Gender identity discrimination, fundamentally, refers to unjust treatment of persons because of their self-identified gender, which may or may not conform to their biological sex. It is a form of discrimination that has been largely overlooked in the financial industry and has adversely affected members of the LGBTQ+ community seeking credit services.
This addition to Minnesota law not only expands the fair lending statute, but it also signals a larger trend towards increased recognition of transgender and non-binary rights in the legal arena. Minnesota’s steps are also reflective of a larger transition in the economic sector, as corporations seek to become more inclusive and adaptive to the changing social landscape.
The amendment has been facilitated by the collaboration between legislators and legal firms, with Husch Blackwell LLP playing a pivotal role. The progress made by Minnesota can serve as a blueprint for other states to incorporate similar laws in their jurisdictions aimed towards making lending practices more equitable for everyone.
Detailed information can be found at JD Supra.