Posted on 10/16/2023 9:58:40 PM PDT by SeekAndFind
The Biden administration has warned U.S. banks and other financial institutions that they can't reject illegal immigrants' credit applications based solely or predominantly on their immigration status.
The Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) said in a recent statement that rejecting illegal immigrants for credit cards and various types of loans just because they are noncitizens is unlawful.
The two agencies stated that they were issuing the warning "because consumers have reported being rejected for credit cards as well as for auto, student, personal and equipment loans because of their immigration status, even when they have strong credit histories and ties to the United States and are otherwise qualified to receive the loans."
Specifically, the agencies cited the provisions of the Equal Credit Opportunity Act (ECOA), which protects credit applicants from discrimination based on such characteristics as race, religion, sexual orientation, and national origin.
The agencies argue that protections afforded by ECOA and other laws extend to alienage, so banks that have blanket policies to deny loans to illegal immigrants may be breaking the law.
“Lenders should not deny people the opportunity to take out a loan to buy a home, build their businesses or otherwise pursue their financial goals because of unlawful bias and without regard to their actual ability to repay,” Assistant Attorney General Kristen Clarke of the DOJ's Civil Rights Division said in a statement.
“Fair access to credit is crucially important for building wealth and strengthening household financial stability,” CFPB Director Rohit Chopra said in a statement. “The CFPB will not allow companies to use immigration status as an excuse for illegal discrimination.”
Bud Cummins, a former U.S. attorney, objected to the agencies' warning to banks and other financial institutions.
"DOJ and CFPB tell banks it might be illegal to refuse to loan money to people [who] broke federal law to reach the bank. You gotta be kidding me. The invasion of illegal immigrants is intentional and must be stopped," he wrote on X, formerly known as Twitter.
According to the Center for Immigration Studies, there were roughly 11.35 million illegal immigrants residing in the United States as of January 2022.
The agencies said that ECOA protections extend to alienage, although in a joint statement, they acknowledged some gray area, namely that the act "does not expressly prohibit consideration of immigration status."
Some financial institutions have maintained blanket policies denying people credit based on their immigration status, without regard for their ability to repay, interpreting ECOA in a way that they believe shields them from liability, according to the agencies, which added that this is incorrect.
"A creditor may consider an applicant's immigration status when necessary to ascertain the creditor's rights regarding repayment," the agencies said, explaining that Regulation B, a rule that implements ECOA, expressly states that the only conditions under which immigration status may be considered is only to determine creditors' "rights and remedies regarding repayment" of a loan.
If financial institutions consider immigration status for any other reason, the agencies said they're probably breaking the law.
"Creditors should be aware that unnecessary or overbroad reliance on immigration status in the credit decisioning process, including when that reliance is based on bias, may run afoul of ECOA's antidiscrimination provisions and could also violate other laws," the agencies said.
The "other laws" mentioned could refer to the 1866 Civil Rights Act, also known as Section 1981, which the agencies said in their joint statement "has long been construed to prohibit discrimination based on alienage."
They said that courts have found that "ECOA's prohibition of national origin discrimination and Section 1981's prohibitions complement one another and that discrimination that arises from overbroad restrictions on lending to noncitizens may violate either or both statutes."
It's unclear whether any banks or financial institutions intend to challenge the DOJ and CFPB's interpretation of the law regarding the provision of loans to illegal immigrants.
“… and Jury Duty.”
…when Republicans are brought to trial.
He is probably a plumber and is making $80gs a year.
without regard to their actual ability to repay“”
This is the community reinvestment act part 2.
Another straw on economy camels back
Crashing the economy on purpose
Wally world is like that here. except add in Indians (eastern). All of them rude. Hispanics (groups of women—presumably the guys are in the truck)bring all the kids and its a moving 3 ring circus. You can’t maneuver around. Indians will get in your way and not move even when they know you are trying to get around them. I’m too polite to barrel a— through them so I end up waiting until everything clears before proceeding. Its maddening, but hey I’m just a middle age white guy with a bad leg, what am I going to do?
It’s because the DemocRATs know that they don’t have enough votes for 2024 and beyond.
Think I will buy a palatial estate. Will declare myself an illegal alien and collect. I already say on my job applications that I am an African American, so why stop there?
You are doing it all wrong. first apply for a bank loan at BOA with a fake name as they do not require a SS number to open an account. Spend the money and disappear. It is the new American way to get ahead.
BAC is who the chinese send money home through as they are the only bank I know of that allows that.
Oh geeze.
No
Unlike 2007-2008.... This time there’ll be no recovery.
We’re well on our way to owning nothing.
I don’t know how happy we will be.
No
Someone get a clue.
Yes
There is a term for governments and Presidents that “ order” private businesses to do things …
Whatever could that be?
“I already say on my job applications that I am an African American”
Maybe whites will begin to choose black-preferred names for their newborns.
Creating the bubble to pop at the appropriate time.
That's rather redundant: Zero IS the man behind the curtain.
“...and without regard to their actual ability to repay”.
Say what?
This is unlawful. What an incentive for illegals to come.
“Maybe whites will begin to choose black-preferred names for their newborns.”
If I was asked about it I would say I was born in Nairobi which makes me African American.
aaaahhh...... Banks must accept the credit applications.
That does not necessarily correlate with providing actual loans
That makes me even more upset by the incompetent and dishonest contractors I've had, who have the obligatory large new trucks.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.