Search Results: ECOA

Supreme Court Will Hear ECOA Case About Spousal Guarantors

The Equal Credit Opportunity Act (ECOA) prohibits discrimination against applicants for credit—but what about guarantors who agree to be responsible for repayment?  A federal regulation treats spousal guarantors as “applicants” who can sue under EOCA, but two federal appellate courts disagreed with each other about the question. The Supreme Court agreed on…

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CFPB Director Proposes to Supervise "Captive" Auto Finance Companies

On September 18, CFPB Director Richard Cordray delivered remarks at a Field Hearing about CFPB’s latest proposed rule, which would allow it to begin regulating “captive” finance companies – those entities owned by automotive manufacturers “for the primary purpose of facilitating sales for their parent companies and associated dealers.” In his…

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Recent DOJ & CFPB Consent Orders Highlight ECOA Risks For Servicers

Synchrony Bank (formerly known as GE Capital Retail Bank) made two direct mail offers to its credit card holders, but it did not send the offers to Spanish-speaking customers.  The Bank self-reported its actions, resulting in consent orders with the Consumer Financial Protection Bureau and the Department of Justice, which…

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