Defense and Compliance Attorneys
Consumer Reports sent a formal comment letter to the Consumer Financial Protection Bureau (CFPB) on December 10–14, 2025, urging the agency not to move forward with a proposed rule that would significantly weaken fair lending protections under the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B. The letter responds to a CFPB proposal issued under the Trump administration that would roll back several long‑standing tools used to identify and remedy discrimination in credit markets.
What the letter is about
Consumer Reports’ letter focuses on a CFPB proposed rule that would change how the Bureau enforces ECOA, the key federal law that prohibits discrimination in lending based on race, sex, and other protected characteristics. The organization warns that the proposal would dismantle core elements of the fair‑lending framework that have been in place for decades and that are central to combating redlining and other discriminatory practices.
Key protections at risk
The letter highlights three main areas where the CFPB proposal would scale back protections:
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Elimination of disparate‑impact liability as an enforcement tool under ECOA
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Narrowing of “discouragement” protections that currently cover a wide range of practices that deter protected groups from applying for credit
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Substantial new limits on Special Purpose Credit Programs (SPCPs), which are designed to expand access to credit for historically underserved communities
Consumer Reports argues that taken together, these changes would “undo decades of progress” in fair lending enforcement and invite lenders to adopt policies that harm entire communities without meaningful accountability.
Positions compared
The CFPB proposal has drawn sharply different reactions from industry and consumer advocates. Consumer Reports is part of a broad coalition of civil rights, housing, and consumer groups opposing the rule, while major banking trade associations have expressed support.
| Actor / document | Stance on CFPB ECOA proposal | Main arguments cited |
|---|---|---|
| Consumer Reports letter | Opposes; urges CFPB not to weaken fair lending protections | Says removing disparate impact, narrowing discouragement, and restricting SPCPs will worsen discrimination and reverse decades of fair‑lending progress. |
| American Bankers Association letter | Supports changes | Argues enforcement should be “grounded in the text of ECOA,” reducing ambiguity and regulatory risk for lenders while maintaining a commitment to nondiscriminatory lending. |
| Civil rights and housing groups (e.g., NFHA, multistate AG letters) | Strongly oppose | Warn that the rule would “eviscerate” protections for women and communities of color, erase gains in fair lending and homeownership, and conflict with settled law on disparate impact. |
Why Consumer Reports objects
Consumer Reports stresses that disparate‑impact liability is a “core civil rights tool” that has been used for more than forty years to uncover discriminatory patterns that may not involve overt intent, such as algorithmic models or neutral‑seeming underwriting rules that disproportionately harm protected classes. The letter also defends SPCPs as proven mechanisms that have delivered tangible benefits—like down‑payment assistance and affordable mortgage products—to tens of thousands of borrowers in communities historically excluded from mainstream credit.
Requested CFPB actions
In its letter, Consumer Reports urges the CFPB to withdraw the proposed rule and retain the existing ECOA and Regulation B framework, including explicit recognition of disparate‑impact liability, broad discouragement protections, and robust authority for SPCPs. The organization also aligns with other consumer and civil rights groups in calling for the Bureau instead to strengthen guidance on issues like algorithmic discrimination, rather than scaling back enforcement tools.
If you need the exact language for a particular section of the letter (for example, on disparate impact or SPCPs), that can be summarized more narrowly.
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