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ABA: The American Bankers Association
Compliance News

CFPB Highlights Fair Lending Protections for Businesses Seeking PPP Loans

In a blog post, the Consumer Financial Protection Bureau reminded small businesses—including those seeking loans through the PPP—of the fair lending protections that apply under the Equal Credit Opportunity Act and other anti-discrimination laws.

The blog post highlights several potential signs of lending discrimination based on race, sex or other protected category, including refusing an available loan or workout option even if a borrower meets advertised requirements; offering credit or workout options at a higher rate or worse terms than what the borrower applied for; discouraging a potential borrower from applying for credit because of a protected characteristic; denying credit without providing an explanation or a way to find out why; and negative comments about race, national origin, sex or other protected statuses.