California Attorney General Rob Bonta has joined a coalition of 21 attorneys general in opposing a proposed rule by the Consumer Financial Protection Bureau (CFPB) under the Trump Administration. The proposal would alter or remove several provisions of the Equal Credit Opportunity Act (ECOA) regulations, which are designed to prevent discrimination in credit decisions.
In a comment letter to the CFPB, the attorneys general argue that these changes would eliminate key antidiscrimination tools and make it harder to enforce protections against discriminatory lending practices. They request that the CFPB withdraw its proposed rule, stating that the existing provisions align with ECOA’s statutory purpose and remain necessary in today’s credit market.
“The federal government is seeking to reverse decades of established rules that prevent discrimination in the credit industry despite there being continued clear examples of ongoing discriminatory treatment by credit and lending institutions,” said Attorney General Bonta. “Eliminating these safeguards would leave people more vulnerable to unfair treatment, financial harm, and opaque lending practices. Everyone, no matter their background, race, age, sex, or religion, deserves fair and transparent access to credit. Credit should not be a privilege, but a right for economic opportunity. We urge the CFPB to withdraw these proposed rules that will create insurmountable barriers to enforcing antidiscrimination statutes.”
Credit discrimination occurs when lenders make decisions based on characteristics such as race, color, religion, national origin, sex, marital status, age, military or veteran status, public assistance status or other impermissible factors. This can result in consumers being discouraged from applying for credit or receiving less favorable terms even if they qualify.
The CFPB’s proposal was published on November 13, 2025. It would undermine protections against discouragement in loan applications; restrict special purpose credit programs offered by for-profit organizations; and remove disparate impact claims as a way to demonstrate discrimination. Disparate impact refers to policies that appear neutral but disproportionately harm certain groups based on protected characteristics.
The attorneys general argue that removing disparate impact liability contradicts ECOA’s intent and would weaken consumer protections. They also contend that changing discouragement regulations is unlawful and could hinder both consumers and state enforcement efforts.
Earlier this month Attorney General Bonta issued a consumer alert reminding Californians that discrimination remains illegal under state and federal law after the CFPB ended a consent order with Citibank regarding alleged discrimination against Armenian-American applicants in Southern California.
Joining Bonta are attorneys general from Arizona, Colorado, Connecticut, Delaware, District of Columbia, Hawai’i, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada,
New Jersey,
New York,
North Carolina,
Oregon,
Rhode Island,
Vermont,
and Washington.
