On November 13, 2025, the CFPB issued a proposed rule that amends provisions related to disparate impact, discouragement of applicants or prospective applicants, and special purpose credit programs under Regulation B, the regulation implementing the Equal Credit Opportunity Act (ECOA). According to the CFPB, the amendments would facilitate compliance with ECOA by clarifying the obligations imposed by the statute.
Recent Executive Orders issued in 2025 direct federal agencies, including the CFPB, to eliminate illegal discrimination and limit the use of disparate-impact liability. Consistent with these actions, the Bureau proposed to:
Provide that ECOA does not authorize disparate impact claims.
The CFPB is proposing to delete language in § 1002.6(a) and its accompanying commentary indicating that disparate-impact liability, which is referred to in the rule as the “effects test,” may be applicable under ECOA, and add language stating that the Act does not recognize the “effects test.” The Bureau is also proposing to delete the language in comment 2(p)-4 referring to the effects test.
Amend the prohibition on discouraging applicants or prospective applicants.
The proposed revisions would address several different aspects of § 1002.4(b), including (1) what constitutes an oral or written statement, (2) what constitutes a statement to an applicant or prospective applicant, and (3) the standard for showing prohibited discouragement.
Amend the standards for Special Purpose Credit Programs (SPCPs) offered or participated in by for-profit organizations to include new standards and related restrictions.
Comments on the proposed changes will be accepted until December 15, 2025.
The CFPB’s proposed rule can be found here.