News & Analysis as of

Equal Credit Opportunity Act Disparate Impact Enforcement Actions

Frost Brown Todd

Disparate Impact Discrimination in AI Underwriting Alleged Against Student Loan Company

Frost Brown Todd on

On July 10, 2025, the Massachusetts Attorney General’s Office (AGO) reached a $2.5 million settlement with a private student loan company to resolve allegations that its lending practices violated various consumer protection...more

Ballard Spahr LLP

Disparate Impact Executive Order and HUD to Reconsider Disparate Impact Rule

Ballard Spahr LLP on

President Trump recently signed an Executive Order entitled “Restoring Equality of Opportunity and Meritocracy“ to eliminate the use of disparate impact liability. The U.S. Department of Housing and Urban Development (HUD)...more

Venable LLP

FTC Commissioner Claims Agency Creates Favorable Precedent Through Venue Selection

Venable LLP on

During the dog days of August, the Federal Trade Commission (FTC) brought two complaints against auto companies involving alleged deceptive and discriminatory price advertising....more

Ballard Spahr LLP

DOJ Settles Redlining Claim Against ESSA Bank

Ballard Spahr LLP on

The Justice Department (DOJ) recently announced a settlement with ESSA Bank & Trust (ESSA), which has agreed to pay over $3 million to resolve allegations that it engaged in a pattern or practice of redlining in violation of...more

King & Spalding

The Implications of a Revived Disparate Impact Doctrine Under a Biden CFPB

King & Spalding on

Every change in presidential administration results in shifts to agencies’ policy priorities and enforcement efforts. In a Biden Administration, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”), in particular,...more

Ballard Spahr LLP

CFPB Files First Ever Redlining Complaint Against a Non-Bank Mortgage Lender

Ballard Spahr LLP on

On July 15, 2020, the CPFB filed a complaint in federal court against Townestone Financial, Inc. (Townestone) representing the first ever redlining complaint against a non-bank mortgage lender. ...more

Hudson Cook, LLP

The FTC, Auto Dealers, and Credit Discrimination: What's Next?

Hudson Cook, LLP on

We have looked at the Federal Trade Commission's sweeping case against Bronx Honda and its general manager. Was this case part of a concerted effort by the FTC to ferret out illegal credit discrimination by automobile...more

Ballard Spahr LLP

Mulvaney comments on enforcement approach, use of disparate impact

Ballard Spahr LLP on

According to a Politico report, CFPB Acting Director Mick Mulvaney, speaking at a Washington, D.C. event, commented on changes to the Bureau’s approach to bringing enforcement actions and the Bureau’s plans to review the use...more

Ballard Spahr LLP

Republican members of House Financial Services Committee release new report on CFPB’s auto finance actions

Ballard Spahr LLP on

Republican members of the House Financial Services Committee recently released a report, prepared by the Republican Staff of the Committee, titled “Unsafe at Any Bureaucracy, Part III: The CFPB’s Vitiated Legal Case Against...more

Ballard Spahr LLP

Director Cordray defends CFPB positions in appearance before Senate Banking Committee; comments on small business lending and...

Ballard Spahr LLP on

Much of Director Cordray’s testimony in his appearance before the Senate Banking Committee yesterday consisted of his predictable defense of various CFPB positions. While the hearing was much less contentious than last...more

McGuireWoods LLP

CFPB Poised to Continue Focused Scrutiny of Indirect Auto Lenders

McGuireWoods LLP on

Earlier this month, the Consumer Financial Protection Bureau (CFPB) announced a joint enforcement action with the Department of Justice (DOJ) against Toyota Motor Credit Corporation (TMCC), an indirect auto lender, which,...more

MoFo Reenforcement

CFPB Brings First ECOA Disparate Impact Action Post-Inclusive Communities

MoFo Reenforcement on

Just over 18 months after bringing a disparate impact-based ECOA case against Ally Financial (“Ally”) for discriminatory auto loan pricing, the CFPB has struck again—this time taking action against American Honda Finance...more

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