The Consumer Financial Protection Bureau and the Justice Department released a joint statement on Thursday notifying financial institutions that they cannot discriminate against illegal immigrants.
“All credit applications are protected from discrimination on the basis of their national origin, race, and other characteristics covered by the Equal Credit Opportunity Act, regardless of their immigration status,” the reminder states.
DOJ and CFPB said they released the statement over reports of consumers being denied credit cards as well as auto, student, personal, and equipment loans due to their immigration status.
“Fair access to credit is crucially important for building wealth and strengthening household financial stability,” said CFPB Director Rohit Chopra. “The CFPB will not allow companies to use immigration status as an excuse for illegal discrimination.”
While the Equal Credit Opportunity Act allows a creditor to consider immigration status when determining the “creditor’s rights regarding repayment,” DOJ and CFPB emphasized that unnecessary reliance on a person’s immigration status may violate federal law.
Recommended
“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,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This guidance reminds lenders that denying someone access to credit based solely on their actual or perceived immigrant status may violate federal law.”
Join the conversation as a VIP Member