Lenders can’t use racist language or other tools to discourage potential borrowers from applying for loans, a federal appeals court ruled in a case the Consumer Financial Protection Bureau brought against a Chicago-area mortgage lender.
A unanimous panel of the US Court of Appeals for the Seventh Circuit looked to the text of the Equal Credit Opportunity Act, which includes discouragement of borrowers among prohibited activities.
“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,” the Thursday opinion by Judge Kenneth F. ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.