The Consumer Financial Protection Bureau (CFPB) is set to publish a final rule on Wednesday that eliminates disparate-impact liability under the Equal Credit Opportunity Act (ECOA) and adds new prohibitions for Special Purpose Credit Programs (SPCPs).

The rule amends Regulation B, which implements ECOA, to clarify provisions related to disparate impact, the discouragement of prospective applicants and SPCPs.

“The Bureau’s final rule provides that ECOA does not authorize disparate-impact liability (effects test), further defines discouragement, and adds prohibitions and conditions for SPCPs,” the CFPB said.

The bureau issued a request for information on ECOA in 2020 and details ⇒

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