Proposed RuleC1-2025-19864
Equal Credit Opportunity Act (Regulation B)
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
February 25, 2026
Issuing agencies
Consumer Financial Protection Bureau
Full Text
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<title>Federal Register, Volume 91 Issue 37 (Wednesday, February 25, 2026)</title>
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[Federal Register Volume 91, Number 37 (Wednesday, February 25, 2026)]
[Proposed Rules]
[Pages 9191-9193]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: C1-2025-19864]
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CONSUMER FINANCIAL PROTECTION BUREAU
12 CFR Part 1002
[Docket No. CFPB-2025-0039]
RIN 3170-AB54
Equal Credit Opportunity Act (Regulation B)
Correction
In proposed rule document 2025-19864, appearing on pages 50901-
50923 in the issue of Thursday, November 13, 2025, make the following
correction to conform with the rule document as it was submitted by the
Bureau on November 7, 2025:
The regulatory text beginning on page 50920, in the third column,
in the 3rd line, should read as follows:
List of Subjects in 12 CFR Part 1002
Banks, Banking, Civil rights, Consumer protection, Credit, Credit
unions, Marital status discrimination, National banks, Penalties,
Religious discrimination, Reporting and recordkeeping requirements,
Savings associations, Sex discrimination.
Authority and Issuance
For the reasons set forth in the preamble, the Bureau proposes to
amend Regulation B, 12 CFR part 1002, as set forth below:
PART 1002--EQUAL CREDIT OPPORTUNITY ACT (REGULATION B)
[squf] 1. The authority citation for part 1002 continues to read as
follows:
Authority: 12 U.S.C. 5512, 5581; 15 U.S.C. 1691b. Subpart B is
also issued under 15 U.S.C. 1691c-2.
SUBPART A--GENERAL
[squf] 2. Amend Sec. 1002.4 by revising paragraph (b) to read as
follows:
Sec. 1002.4 General rules.
* * * * *
(b) Discouragement. A creditor shall not make any oral or written
statement, in advertising or otherwise, directed at applicants or
prospective applicants that the creditor knows or should know would
cause a reasonable person to believe that the creditor would deny, or
would grant on less favorable terms, a credit application by the
applicant or prospective applicant because of the applicant or
prospective applicant's prohibited basis characteristic(s). For
purposes of this paragraph (b), oral or written statements are spoken
or written words, or visual images such as symbols, photographs, or
videos.
* * * * *
[squf] 3. Amend Sec. 1002.6 by revising paragraph (a) to read as
follows:
Sec. 1002.6 Rules concerning evaluation of applications.
(a) General rule concerning use of information. Except as otherwise
provided in the Act and this part, a creditor may consider any
information obtained, so long as the information is not used to
discriminate against an applicant on a prohibited basis. The Act does
not provide that the ``effects test'' applies for determining whether
there is discrimination in violation of the Act.
* * * * *
[squf] 4. In Sec. 1002.8, revise paragraphs (a)(3)(i) and (ii), the
heading of paragraph (b), and paragraphs (b)(2) and (c), and add
paragraphs (b)(3) and (4), to read as follows:
Sec. 1002.8 Special purpose credit programs.
(a) * * *
(3) * * *
(i) * * *
(A) Identifies the class of persons that the program is designed to
benefit;
(B) Sets forth the procedures and standards for extending credit
pursuant to the program;
(C) Provides evidence of the need for the program;
(D) Explains why, under the organization's standards of
creditworthiness, the class of persons would not receive such credit in
the absence of the program; and
(E) When the persons in the class are required to share one or more
common characteristics that would otherwise be a prohibited basis,
explains why meeting the special social needs addressed by the program:
(1) Necessitates that its participants share the specific common
characteristics that would otherwise be a prohibited basis; and
(2) Cannot be accomplished through a program that does not use
otherwise prohibited bases as participant eligibility criteria; and
(ii) The program is established and administered to extend credit
to a class of persons who, under the organization's standards of
creditworthiness, would not receive such credit.
(b) Controlling provisions--
* * * * *
(2) Common characteristics. A program described in paragraphs
(a)(2) or (a)(3) of this section qualifies as a special purpose credit
program only if it was established and is administered so as not to
discriminate against an applicant on any prohibited basis; however,
except as provided in paragraphs (b)(3) and (b)(4) of this section, all
program participants may be required to share one or more common
characteristics that would otherwise be a prohibited basis so long as
the program was not established and is not administered with the
purpose of evading the requirements of the Act or this part.
(3) Prohibited common characteristics. A special purpose credit
program described in paragraph (a)(3) of this section shall not use the
race, color, national origin, or sex, or any combination thereof, of
the applicant, as a common characteristic or factor in determining
eligibility for the program.
(4) Otherwise prohibited bases in for-profit programs. Subject to
paragraph (b)(3) of this section, a special purpose credit program
described in paragraph (a)(3) of this section may require its
participants to share one or more common characteristics that would
otherwise be a prohibited basis only if the for-profit organization
provides evidence for each participant who receives credit through the
program that in the absence of the program the participant would not
receive such credit as a result of those specific characteristics.
(c) Special rule concerning requests and use of information. If
participants in a special purpose credit program described in paragraph
(a) of this section are required to possess one or more common
characteristics that would otherwise be a prohibited basis and if the
program otherwise satisfies the requirements of paragraphs (a) and (b)
of this section, a creditor may request and consider information
regarding the common characteristic(s)
[[Page 9192]]
in determining the applicant's eligibility for the program.
* * * * *
[squf] 5. Amend Sec. 1002.15 by revising paragraph (d)(1)(ii) to read
as follows:
Sec. 1002.15 Incentives for self-testing and self-correction.
(d) * * *
(1) * * *
(ii) By a government agency or an applicant in any proceeding or
civil action in which a violation of the Act or this part is alleged.
* * * * *
[squf] 6. In Supplement I to part 1002:
[squf] a. Under Section 1002.2--Definitions, revise Paragraph 2(p)(4),
including the heading.
[squf] b. Under Section 1002.4--General Rules, revise Paragraph 4(b),
including the heading.
[squf] c. Under Section 1002.6--Rules Concerning Evaluation of
Applications, revise 6(a)--General rule concerning use of information,
by revising Paragraph (6)(a)(2).
[squf] d. Under Section 1002.8--Special Purpose Credit Programs, revise
8(a)--Standards for programs by revising Paragraph (8)(a)(5), revise
8(b)--Rules in other sections by revising the heading and adding
Paragraph (8)(b)(2), revise 8(c)--Special rule concerning requests and
use of information by revising Paragraph (8)(c)(2).
The revisions and additions read as follows:
Supplement I to Part 1002--Official Interpretations
* * * * *
Section 1002.2--Definitions
* * * * *
2(p) Empirically derived and other credit scoring systems.
* * * * *
4. Disparate treatment. An empirically derived, demonstrably and
statistically sound, credit scoring system may include age as a
predictive factor (provided that the age of an elderly applicant is not
assigned a negative factor or value). Besides age, no other prohibited
basis may be used as a variable. Generally, credit scoring systems
treat all applicants objectively and thus avoid problems of disparate
treatment. In cases where a credit scoring system is used in
conjunction with individual discretion, disparate treatment could
conceivably occur in the evaluation process.
* * * * *
Section 1002.4--General Rules
* * * * *
Paragraph 4(b).
1. Discouragement. Generally, the regulation's protections apply
only to persons who have requested or received an extension of credit.
In keeping with the purpose of the Act--to promote the availability of
credit on a nondiscriminatory basis--Sec. 1002.4(b) prohibits
creditors from making oral or written statements directed at applicants
or prospective applicants that the creditor knows or should know would
cause a reasonable person to believe that the creditor would deny their
credit application, or would grant it on less favorable terms, because
of their prohibited basis characteristic(s). For purposes of Sec.
1002.4(b), encouraging statements directed at one group of consumers
cannot discourage other consumers who were not the intended recipients
of the statements.
i. Statements prohibited by Sec. 1002.4(b) include:
A. A statement that the applicant should not bother to apply, after
the applicant states that he is retired.
B. Statements directed at the general public that express a
discriminatory preference or a policy of exclusion against consumers
based on one or more prohibited basis characteristics in violation of
the Act.
C. The use of interview scripts that discourage applications on a
prohibited basis.
ii. Statements not prohibited by Sec. 1002.4(b) include:
A. Statements directed at one group of consumers, encouraging that
group of consumers to apply for credit.
B. Statements in support of local law enforcement.
C. Statements recommending that, before buying a home in a
particular neighborhood, consumers investigate, for example, the
neighborhood's schools, its proximity to grocery stores, and its crime
statistics.
D. Statements encouraging consumers to seek out resources to
develop their financial literacy.
* * * * *
Section 1002.6--Rules Concerning Evaluation of Applications
6(a) General rule concerning use of information. 1. General. When
evaluating an application for credit, a creditor generally may consider
any information obtained. However, a creditor may not consider in its
evaluation of creditworthiness any information that it is barred by
Sec. 1002.5 from obtaining or from using for any purpose other than to
conduct a self-test under Sec. 1002.15.
2. Disparate treatment. The Act prohibits practices that
discriminate on a prohibited basis regarding any aspect of a credit
transaction. The Act does not provide for the prohibition of practices
that are facially neutral as to prohibited bases, except to the extent
that facially neutral criteria function as proxies for protected
characteristics designed or applied with the intention of advantaging
or disadvantaging individuals based on protected characteristics.
* * * * *
Section 1002.8--Special Purpose Credit Programs
8(a) Standards for programs.
1. Determining qualified programs. The Bureau does not determine
whether individual programs qualify for special purpose credit status,
or whether a particular program benefits an ``economically
disadvantaged class of persons.'' The agency or creditor administering
or offering the loan program must make these decisions regarding the
status of its program.
2. Compliance with a program authorized by Federal or state law. A
creditor does not violate Regulation B when it complies in good faith
with a regulation promulgated by a government agency implementing a
special purpose credit program under Sec. 1002.8(a)(1). It is the
agency's responsibility to promulgate a regulation that is consistent
with Federal and state law.
3. Expressly authorized. Credit programs authorized by Federal or
state law include programs offered pursuant to Federal, state, or local
statute, regulation or ordinance, or pursuant to judicial or
administrative order.
4. Creditor liability. A refusal to grant credit to an applicant is
not a violation of the Act or regulation if the applicant does not meet
the eligibility requirements under a special purpose credit program.
5. Determining need. In designing a special purpose credit program
under Sec. 1002.8(a)(3), a for-profit organization must determine that
the program will benefit a class of people who would otherwise be
denied credit. This determination can be based on a broad analysis
using the organization's own research or data from outside sources,
including governmental reports and studies. For example, a creditor
might design new products to reach consumers who would not meet its
traditional standards of creditworthiness due to such factors as credit
inexperience or the use of credit sources that may not report to
consumer reporting agencies. Or, a bank could review Home Mortgage
Disclosure Act
[[Page 9193]]
data along with demographic data for its assessment area.
6. Elements of the program. The written plan must contain
information that supports the need for the particular program. The plan
also must either state a specific period of time for which the program
will last, or contain a statement regarding when the program will be
reevaluated to determine if there is a continuing need for it.
8(b) Controlling provisions.
1. Applicability of rules. A creditor that rejects an application
because the applicant does not meet the eligibility requirements
(common characteristic or financial need, for example) must
nevertheless notify the applicant of action taken as required by Sec.
1002.9.
2. Use of common characteristics. Section 1002.8(b)(2) permits a
creditor to determine eligibility for a special purpose credit program
using one or more common characteristics that would otherwise be a
prohibited basis only so long as that section's requirements, the
requirements of Sec. 1002.8(b)(3) and (4), and the other requirements
of this part are satisfied. Under Sec. 1002.8(b)(2), once the
characteristics of the program's class of participants are established,
the creditor is prohibited from discriminating among potential
participants on a prohibited basis.
8(c) Special rule concerning requests and use of information.
1. Request of prohibited basis information. This section permits a
creditor to request and consider certain information that would
otherwise be prohibited by Sec. Sec. 1002.5 and 1002.6 to determine an
applicant's eligibility for a particular program.
2. Example. An example of a program under which the creditor can
ask for and consider information about a prohibited basis is an energy
conservation program to assist the elderly, for which the creditor must
consider the applicant's age.
[FR Doc. C1-2025-19864 Filed 2-24-26; 8:45 am]
BILLING CODE 0099-01-D
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</html>Indexed from Federal Register on February 25, 2026.
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