Federal 7th Circuit Court
Civil Court
Equal Credit Opportunity Act
The Consumer Financial Protection Bureau brought an action against a mortgage lender and its CEO, under the Equal Credit Opportunity Act alleging that they were liable for discouraging black applicants for mortgage loans through statements made on a commercial advertisement radio show. The district court granted the defendant’s motion to dismiss by finding that the ECOA does not apply to the discouragement of prospective applicants. The Seventh Circuit disagreed and reversed, finding that when reading the text of the ECOA, it was clear that Congress authorized the imposition of liability for the discouragement of prospective applicants. (SYKES and ROVNER, concurring)