In a joint statement by The Bureau of Consumer Financial Protection (CFPB) and Department of Justice (DOJ), financial institutions were reminded they are prohibited from discriminating against credit applicants due to their immigration status. According to the statement released on October 12, all credit applicants are safeguarded against discrimination based on race, national origin, and other characteristics covered by the Equal Credit Opportunity Act (ECOA), regardless of their immigration status.
This reminder comes following reports from consumers about them being denied for credit cards, as well as auto, student, personal, and equipment loans on the grounds of their immigration status. Here, the role of the statement is plainly crucial: redressing issues of discrimination apparent in the financial sector and reaffirming core legal principles that should already be guiding the operations of these institutions.
By issuing this joint statement, the CFPB and DOJ are making it clear to businesses that discriminatory practices are not only ethically wrong but also legally penalizable under the defined guidelines. Moving forward, financial organizations must ensure the stringent adherence to these rules to prevent the unjust denial of essential financial services to eligible consumers, no matter their immigration status.