The Trump administration has unveiled a proposal to withdraw joint guidance issued in 2023 by the Consumer Financial Protection Bureau and the Justice Department regarding the use of immigration status in credit decisions.
The Biden-era statement warned that the overuse of a person’s immigration status in determining credit eligibility could violate the anti-discrimination provisions of the Equal Credit Opportunity Act (ECOA). Immigration status could, in certain circumstances, be a lawful factor in determining credit eligibility, particularly repayment, but could not be a blanket policy.
NIADA welcomes this continued focus on clarifying the application of federal fair lending laws. Clear, consistent guidelines enable our dealer members to maintain compliance and operate with confidence. At the same time, we remind dealers that non-compliance with fair lending laws and regulations carries significant legal and business risks, including potential enforcement actions and reputational harm, and we strongly encourage dealers and lenders to adopt and follow policies and practices that promote equal access to credit for all individuals.
