The DOJ issued a warning in a joint statement with the Consumer Financial Protection Bureau (CFPB) to financial institutions for rejecting illegal immigrants’ credit applications last week.
“The Justice Department and CFPB are issuing this statement because consumers have reported being rejected for credit cards as well as for auto, student, personal and equipment loans because of their immigration status, even when they have strong credit histories and ties to the United States and are otherwise qualified to receive the loans,” the agencies said.
The two agencies claimed that the Equal Credit Opportunity Act (ECOA) protections for national origin and race extended to alienage.
“While ECOA and Regulation B do not expressly prohibit consideration of immigration status, they do prohibit creditors from using immigration status to discriminate on the basis of national origin, race, or any other protected characteristic,” said the agencies. “Immigration status may broadly overlap with or, in certain circumstances, serve as a proxy for these protected characteristics.”
From The Daily Wire:
The agencies further warned against “overbroad consideration” of certain procedures, such as questioning the length of time an individual has possessed a Social Security number or requiring certain types of documentation, ID, or in-person application materials. The agencies warned that these screening tactics could be interpreted as unlawful discrimination on the basis of national origin or race.