Team Biden warns banks against denying illegals loans

FPI / October 17, 2023

U.S. banks and other financial institutions were put on notice by Team Biden that they can't reject credit applications of illegal aliens based solely or predominantly on their immigration status.

The Department of Justice and the Consumer Financial Protection Bureau (CFPB) said that rejecting illegals for credit cards and various types of loans just because they are non-citizens is unlawful.

DOJ and CFPB said they issued the warning "because consumers have reported being rejected for credit cards as well as for auto, student, personal, and equipment loans because of their immigration status, even when they have strong credit histories and ties to the United States and are otherwise qualified to receive the loans."

The Biden team is basing its warning on the Equal Credit Opportunity Act (ECOA), which protects credit applicants from discrimination based on such characteristics as race, religion, sexual orientation, and national origin.

Team Biden contends that protections afforded by ECOA and other laws extend to illegal aliens, so banks that have blanket policies to deny loans to illegals may be breaking the law.

“Lenders should not deny people the opportunity to take out a loan to buy a home, build their businesses or otherwise pursue their financial goals because of unlawful bias and without regard to their actual ability to repay,” Assistant Attorney General Kristen Clarke of the DOJ's Civil Rights Division said in a statement.

Bud Cummins, a former U.S. attorney, slammed the warning to banks and other financial institutions, tweeting: "DOJ and CFPB tell banks it might be illegal to refuse to loan money to people [who] broke federal law to reach the bank. You gotta be kidding me. The invasion of illegal immigrants is intentional and must be stopped."

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