By: ABIA Outside Counsel Chrys Lemon and Adam Maarec, McIntyre & Lemon, PLLC
The Consumer Financial Protection Bureau (CFPB) has issued two bulletins on “fair lending,” which generally prohibit discrimination when making loans based on certain prohibited bases, such as race, color, religion, national origin, sex, marital status, or age. Companies are watching the CFPB’s fair lending activities closely because the agency intends to enforce the law based on the “disparate impact” theory of discrimination, which has been subject to intense debate and litigation. Are these fair lending laws broad enough to cover add-on products, including insurance sold by bank-owned insurance agencies? And will “disparate impact” claims survive?
To learn more about the scope of fair lending laws, read our compliance brief prepared just for bank-owned agencies that are members of ABIA. If you are having trouble logging on or you are with a member that is not a bank, please contact us and we will email you a copy.
ABIA members may access a wealth of compliance information - including our flagship Compliance Handbook on our Compliance page. If you need help logging in, please contact us and we will be happy to assist you.