United StatesRegulation B, 2026 amendments on evaluation of applications, discouragement and special purpose credit programs
12 CFR §§ 1002.4(b), 1002.6(a) and 1002.8(b)(3) and (4), as amended by 91 FR 21620 ()
In force since .
An AI sector rules rule binding private bodies.
- Instrument type
- a regulation made under an act
- Obligation class
- Prohibition
As of .
What it requires
- Do not use information you obtain in evaluating a credit application to discriminate against the applicant on a prohibited basis; otherwise you may consider any information obtained (12 CFR 1002.6(a)).
- Do not design or apply a facially neutral criterion as a proxy for a protected characteristic with the intention of advantaging or disadvantaging individuals based on that characteristic (Supplement I to part 1002, comment 6(a)-2).
- Do not make any oral or written statement, in advertising or otherwise, directed at applicants or prospective applicants that you know or should know would cause a reasonable person to believe that you would deny, or would grant on less favorable terms, a credit application because of a prohibited basis characteristic; spoken or written words and visual images such as symbols, photographs, or videos are statements (12 CFR 1002.4(b)).
- You may direct statements at one group of consumers encouraging that group to apply for credit (Supplement I to part 1002, comment 4(b)-1).
- If you offer a special purpose credit program described in 12 CFR 1002.8(a)(3), do not use the applicant's race, color, national origin, or sex, or any combination of them, as a common characteristic or factor in determining eligibility for the program (12 CFR 1002.8(b)(3)).
- If such a program requires participants to share a characteristic that would otherwise be a prohibited basis, provide evidence for each participant who receives credit through the program that in the absence of the program the participant would not receive such credit as a result of those specific characteristics (12 CFR 1002.8(b)(4)).
These lines are LexLint's reading of the law's text, as of .
What this law does
The Consumer Financial Protection Bureau's final rule published on amended Regulation B on disparate impact, discouragement of applicants or prospective applicants, and special purpose credit programs. The rule is effective .
Section 1002.6(a) now provides that a creditor may consider any information obtained, so long as the information is not used to discriminate against an applicant on a prohibited basis, and that the Act does not provide that the effects test applies for determining whether there is discrimination in violation of the Act.
The official interpretation of section 1002.6(a) says that the Act does not provide for the prohibition of practices that are facially neutral as to prohibited bases, except to the extent that facially neutral criteria function as proxies for protected characteristics designed or applied with the intention of advantaging or disadvantaging individuals based on protected characteristics.
Section 1002.4(b) bars a creditor from making any oral or written statement, in advertising or otherwise, directed at applicants or prospective applicants that the creditor knows or should know would cause a reasonable person to believe that the creditor would deny, or would grant on less favorable terms, a credit application because of a prohibited basis characteristic, and counts spoken or written words and visual images such as symbols, photographs, or videos as statements.
The official interpretation of section 1002.4(b) says that encouraging statements directed at one group of consumers cannot discourage other consumers who were not the intended recipients of the statements. Section 1002.8(b)(3) provides that a special purpose credit program described in paragraph (a)(3) shall not use the race, color, national origin, or sex, or any combination thereof, of the applicant as a common characteristic or factor in determining eligibility for the program.
Section 1002.8(b)(4) allows such a program to require participants to share a characteristic that would otherwise be a prohibited basis only if the for-profit organization provides evidence for each participant who receives credit through the program that in the absence of the program the participant would not receive such credit as a result of those specific characteristics.
When LexLint raises it
When your app profile says your app is a lender.