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Queer Up Finance

Consumer Financial Protection Bureau says banks and lenders cannot discriminate against LGBTQ applicants

The U.S. Consumer Financial Protection Bureau will enforce a federal ban on discrimination in lending cases where a customer is denied credit because of their sexual orientation or gender identity.  This week, the government agency, which is intended to protect consumers from financial fraud and abuse, issued guidance claiming that the Equal Credit Opportunity Act prohibits banks and lenders from rejecting credit and lending services to applicants who identify as LGBTQ, those who don’t conform with traditional sex- or gender-based stereotypes, or applicants who might have been refused based on their social or other associations. CFPB Acting Director David Uejio said “In issuing this interpretive rule, we’re making it clear that lenders cannot discriminate based on sexual orientation or gender identity. The CFPB will ensure that consumers are protected against such discrimination and provided equal opportunities in credit.” LGBTQ advocates praised the guidance as an important step towards achieved equality for LGBTQ financial consumers.