The Consumer Financial Protection Bureau today issued an interpretive rule clarifying that the prohibition against sex discrimination as part of the Equal Credit Opportunity Act and Regulation B includes sexual orientation and gender identity discrimination. The CFPB added that the “prohibition also covers discrimination based on actual or perceived nonconformity with traditional sex- or gender-based stereotypes, and discrimination based on an applicant’s social or other associations.”
As part of the interpretive rule, the bureau said it will update its publications and examination guidance documents and will take enforcement actions to hold financial institutions accountable for actions that violate ECOA.
The CFPB said the interpretive rule is consistent with a 2020 Supreme Court ruling that the prohibition against sex discrimination in the Civil Rights Act of 1964 encompasses sexual orientation discrimination and gender identity discrimination. The CFPB’s interpretive rule is effective upon publication in the Federal Register.
