| In March 2022, the Consumer Financial Protection Bureau (CFPB) updated its internal manual to clarify that discriminatory practices in financial services could be considered “unfair” under the Dodd-Frank Act. The CFPB can impose sanctions against financial institutions if they engage in “unfair practices.” This decision led to a legal challenge by the Chamber of Commerce and other business associations.
On August 14, 2024, a coalition of consumer advocates represented by Democracy Forward filed an amicus brief before the Court of Appeals for the Fifth Circuit, highlighting that the Dodd-Frank Act’s grant of authority to prevent “unfair, deceptive, or abusive acts or practices” in the financial industry includes preventing discriminatory acts that meet the statutory definition of “unfair.” Our brief presents evidence that discrimination in financial services persists and harms consumers, particularly marginalized groups and that such practices may be rightfully categorized as “unfair.” The coalition of consumer advocates is formed by the National Community Reinvestment Coalition, the National Association for Latino Community Asset Builders, the Center for Responsible Lending, Texas Appleseed, the National Consumer Law Center, and the Americans for Financial Reform Education Fund. |