![]() The Commission vote approving the filing of the amicus brief was 3-0. The brief notes that the FTC receives thousands of complaints from consumers each year related to discriminatory lending practices. For example, the brief points to the possibility that a lender could display a “Whites Only” sign or turn away Black consumers as they walk in the door. The FTC also argues that the district court’s ruling would have “profoundly negative consequences” for consumers, emboldening discriminatory lenders to openly discourage consumers from applying for loans. The Commission’s brief notes that the anti-discouragement rule-which has stood for nearly 50 years-is authorized by the plain language of ECOA, which mandates that regulators further ECOA’s “purpose” and prevent its “evasion.” Failure to comply with the ECOA can lead to severe penalties. The joint complaint alleges that Trustmark violated the Fair Housing Act (FHA), the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B, and the Consumer Financial Protection Act of 2010 (CFPA). The ECOA prohibits lenders and financial institutions from discriminating when making loans based on any legally protected criteria, including race, religion, age, sex, and more. In its brief, the FTC argues that the district court’s ruling was incorrect. The Equal Credit Opportunity Act is a critical law that impacts all creditors - including auto dealers. The district court ruled that the anti-discouragement provision was invalid and that ECOA protects only those consumers who have already applied for credit. The CFPB alleged that the defendants took steps to discourage Black consumers from applying for loans, violating Regulation B’s anti-discouragement rule. ![]() Townstone Financial and Barry Sturner, relates to a Chicago-based mortgage lender and its owner, which the CFPB alleged violated Regulation B, the rule that implements ECOA. The Equal Credit Opportunity Act (ECOA) requires that notification of action be provided. Court of Appeals for the Seventh Circuit challenging a district court ruling that invalidated a key anti-discrimination rule in the Equal Credit Opportunity Act (ECOA). The Federal Trade Commission filed a friend-of-the-court ( amicus) brief in the U.S. About the FTC Show/hide About the FTC menu items.News and Events Show/hide News and Events menu items.Advice and Guidance Show/hide Advice and Guidance menu items.Competition and Consumer Protection Guidance Documents.Enforcement Show/hide Enforcement menu items.
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