meta_id 3086677

On April 22, 2026, the Consumer Financial Protection Bureau (CFPB) published a final rule amending Regulation B, which implements the Equal Credit Opportunity Act (ECOA). The final rule addresses three key areas: disparate impact liability, discouragement of applicants, and special purpose credit programs (SPCPs). The key amendments include: No disparate‑impact liability under ECOA: The CFPB determined that the ECOA does not authorize disparate-impact claims. The final rule removes language from Section 1002.6(a) and accompanying commentary indicating that disparate-impact liability applies under the ECOA and adds language clarifying that the Act does not recognize the "effects test." The CFPB concluded that the ECOA's statutory language lacks effects-based language necessary to support disparate-impact liability, distinguishing the ECOA from other antidiscrimination statutes the Supreme Court has found to authorize such claims. Clarified discouragement prohibition: The final rule narrows the prohibition in Section 1002.4(b) to apply only to oral or written statements that a creditor knows or should know would cause a reasonable person to believe the creditor would deny credit or grant less favorable terms because of a prohibited basis characteristic. The rule clarifies that encouraging statements directed at one group of consumers do not constitute prohibited discouragement of other consumers who were not intended recipients. New standards for special purpose credit programs: For SPCPs offered by for-profit organizations, the final rule prohibits using race, color, national origin, or sex as eligibility criteria under new Section 1002.8(b)(3). The rule also imposes additional conditions requiring written plans to demonstrate need and explain why participants would not receive credit absent the program. For-profit SPCPs using other prohibited bases must provide evidence that each participant would not receive credit due to those specific characteristics. The Bureau estimates that the final rule applies to approximately 12,000 depository institutions and 482,000 non-depository institutions subject to Regulation B. The final rule is effective July 21, 2026.