California Attorney General Rob Bonta has issued a new consumer alert emphasizing that credit discrimination remains illegal under both state and federal law.
This alert follows recent actions by the Consumer Financial Protection Bureau (CFPB), which terminated a prior consent order involving Citibank related to allegations of discrimination against Armenian-American credit card applicants in Southern California.
While the alert does not create new requirements, it serves as a strong reminder that financial institutions must ensure full compliance with all applicable anti-discrimination laws, including:
Credit unions should continue reviewing lending policies, staff training, and compliance monitoring to ensure adherence to these requirements and uphold our system’s commitment to fair and equitable access to credit.
This alert also comes at a time of heightened attention on regulatory enforcement. Acting CFPB Director and OMB Director Russell Vought recently notified federal courts that the CFPB expects to exhaust its current funding in early 2026 and, based on an opinion from the Department of Justice’s Office of Legal Counsel, cannot lawfully request additional funds from the Federal Reserve.
As the CFPB’s operational future remains uncertain—and its enforcement activity may be constrained—state regulators may step up oversight and enforcement efforts. The NCUA also retains full enforcement authority, and credit unions should remain mindful of continued exposure to private class action litigation.
For more information, email Heather Line.
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