News & Analysis as of July 30, 2025

Equal Credit Opportunity Act

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Discrimination is prejudicial treatment related to (or inappropriate consideration of) an individual's actual or perceived membership in a particular class, group or category, such as an individual's... more +

Disparate Impact Lives: Massachusetts Attacks AI in Lending

Paul Hastings LLP on 7/15/2025

On July 10, the Massachusetts attorney general announced a $2.5 million settlement with a Delaware-based student loan company to resolve allegations that the company’s lending practices, including the use of artificial...more

DOJ and North Carolina Attorney General Reach $13.5M Settlement in Discriminatory Lending Case

Sheppard Mullin Richter & Hampton LLP on 2/12/2024

On February 5, the DOJ and North Carolina’s attorney general announced a $13.5 million settlement deal with a large regional bank over redlining allegations....more

CFPB Emphasizes that AI is not Above the Law

Cozen O'Connor on 9/22/2023

The CFPB issued guidance for lenders on the use of artificial intelligence (AI) when determining whether or not to extend credit to consumers. The guidance clarifies that creditors relying on AI or other complex credit...more

CFPB Reminds Lenders that Algorithms Are Not a Shield for Discrimination

Cozen O'Connor on 6/3/2022

The CFPB released Consumer Financial Protection Circular 2022-03 and an accompanying press release detailing the agency’s position on the application of anti-discrimination laws to consumer lenders relying on so-called “black...more

State AGs urge Mulvaney to continue use of disparate impact theory of ECOA liability

Ballard Spahr LLP on 9/14/2018

On September 5, 2018 a group of 14 state Attorneys General and the AG for the District of Columbia sent a comment letter to CFPB Acting Director Mick Mulvaney, urging him to refrain from “reexamining the requirements” of the...more

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