CFPB Takes Aim At Discriminatory Lending Practices

Law360, Chicago (April 18, 2012, 4:56 PM EDT) -- The Consumer Financial Protection Bureau sharpened its fair lending enforcement stance Wednesday by saying that it will use "all available legal avenues" to go after lenders with discriminatory practices, including practices that seem neutral but have discriminatory effects.

The agency said it would recognize the disparate impact doctrine in enforcing the Equal Credit Opportunity Act, as have other federal law enforcement and supervisory agencies. Under that theory, disparate impact occurs when a lender's practices are not discriminatory on their face but are in their effects, the...
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