CHICAGO–The Seventh Circuit Court of Appeals just issued a decision in support of the CFPB in a case involving fair lending.
The case at issue involved the Equal Credit Opportunity Act (ECOA) and the question of whether the law prohibits "discouragement" of prospective applicants based on their status as a member of a protected class.
The Court’s Ruling
The court ruled the ECOA prohibits such activity, stating, "When the text of the ECOA is read as a whole, it is clear that Congress authorized the imposition of liability for the discouragement of prospective applicants. Regulation B’s prohibition on discouraging prospective applicants is therefore consistent with the ECOA’s text and purpose."
The full opinion can be found here.