CFPB Rescinds 2020 Advisory Opinion on Special Purpose Credit Programs
On June 17, 2026, the Consumer Financial Protection Bureau (CFPB) rescinded its December 2020 advisory opinion regarding Special Purpose Credit Programs (SPCPs) under the Equal Credit Opportunity Act (ECOA) and Regulation B. The Bureau stated that the advisory opinion no longer reflects current law and guidance following amendments to Regulation B adopted in April 2026.
Background on the ECOA and SPCPs
The ECOA generally prohibits creditors from discriminating in credit transactions on the basis of protected characteristics such as race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or the exercise of rights under consumer protection laws. At the same time, the ECOA permits certain SPCPs established by for-profit organizations to address specific social needs, provided those programs comply with standards established by the CFPB.
In December 2020, the CFPB issued an advisory opinion intended to provide guidance to for-profit organizations seeking to establish SPCPs. The opinion discussed the requirements for written program plans and the types of research and data that could support a determination that a program was needed. Among other guidance, it indicated that for-profit organizations could design SPCPs based on the common characteristic of race, color, national origin, or sex as an eligibility requirement, so long as the organization could demonstrate that the protected class of persons probably would not otherwise receive credit or would receive credit on less favorable terms.
Changes to Regulation B
In April 2026, the CFPB adopted amendments to Regulation B that revised the standards governing SPCPs. According to the Bureau, the amendments were intended to align the regulation more closely with the ECOA and to prevent unlawful discrimination.
Among other changes, the revised regulation prohibits for-profit SPCPs from using race, color, national origin, or sex as eligibility criteria. The CFPB noted that the 2020 advisory opinion referenced earlier regulatory provisions that permitted program participants to share characteristics such as race, national origin, or sex, making portions of the guidance inconsistent with the current regulation.
The amendments also impose additional documentation and evidentiary requirements. Under the revised regulation, creditors offering SPCPs must demonstrate that program participants would actually be denied credit under the institution’s ordinary credit standards absent the program, rather than merely showing that they probably would not receive credit or would receive less favorable terms.
Reasons for the Rescission
In rescinding the 2020 advisory opinion, the CFPB stated that the advisory opinion has become outdated because it does not reflect the new requirements added to Regulation B. The Bureau further concluded that several statements in the opinion directly conflict with the amended regulation. According to the CFPB, rescinding the advisory opinion is intended to reduce confusion regarding the standards that apply to SPCPs offered or participated in by for-profit organizations.
The Bureau also cited constitutional concerns associated with programs that use race, color, sex, or national origin as eligibility criteria. The Bureau noted that courts have scrutinized government involvement in programs that classify individuals on these bases and stated that rescission of the advisory opinion helps address potential constitutional issues.
Regulatory Status
The CFPB issued the rescission under its authority to provide guidance regarding the ECOA and Regulation B. The Bureau emphasized that the rescission itself does not have the force and effect of law and is not legally binding on parties outside the federal government.
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