On January 12, 2026, the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) formally withdrew their October 2023 joint statement addressing creditors’ consideration of immigration status under the Equal Credit Opportunity Act (ECOA) and its implementing Regulation B.
The withdrawal is another explicit renunciation of the previous administration’s policies applicable to financial services, though the agencies were clear that withdrawal of the statement does not substantively change ECOA or Regulation B.
Background: The 2023 statement
The joint statement, issued on October 12, 2023, warned that creditor policies related to an applicant’s citizenship or immigration status could, in certain instances, violate ECOA and Regulation B’s prohibitions on discrimination based on protected characteristics, such as national origin and race. The CFPB and DOJ highlighted real-world examples of consumers being denied various forms of credit – including credit cards, auto loans, student loans and equipment loans – based on their immigration status, even when applicants demonstrated strong credit histories.
Although the 2023 statement acknowledged that Regulation B expressly permits creditors to consider immigration or citizenship status in assessing credit risk, it emphasized potential civil rights risks for such creditors. The agencies cautioned lenders that, to “the extent that a creditor is relying on immigration status for a reason other than determining its rights or remedies for repayment, and the creditor cannot show that such reliance is necessary to meet other binding legal obligations … the creditor may risk engaging in unlawful discrimination.”
Impetus for the statement’s withdrawal
Correcting misimpressions
In a Federal Register notice announcing the withdrawal, the CFPB and DOJ stated that they were rescinding the 2023 statement to correct “misimpressions” it may have created. The agencies reiterate that ECOA and Regulation B do not restrict creditors from considering immigration or citizenship status when evaluating applications, so long as the information is not used to discriminate on a prohibited basis. However, “by focusing primarily on risks that could arise if such consideration were used to discriminate on a protected basis,” the 2023 statement may have created the misimpression that ECOA prohibits or limits consideration of immigration or citizenship status when evaluating credit applications.
Reducing guidance documents
The agencies also stated that the withdrawal of the statement would align with the CFPB’s “revised policy” of issuing guidance “only where necessary and where doing so would reduce compliance burdens.” The CFPB stated that additional guidance on this topic is unnecessary and should therefore be withdrawn.
What this means for creditors
- No substantive change to ECOA or Regulation B
The agencies stressed that consumers’ rights under ECOA remain unchanged. The withdrawal does not itself alter legal requirements and is meant to remove potential confusion associated with the 2023 statement. Creditors that structured their compliance programs in accordance with the 2023 statement may continue operating in that manner without penalty.
- Immigration status remains a permitted factor
Regulation B allows creditors to consider immigration or citizenship status, as well as any additional information needed to secure repayment obligations, provided the creditor does not use that information to discriminate on a prohibited basis.
- Risk-based use of immigration status still requires careful implementation
The agencies maintain the underlying principle that misuse of immigration status could still result in ECOA violations – for example, blanket refusals to consider applications from certain noncitizen groups may still raise red flags.