CFPB Withdraws Prior Guidance on Special Purpose Credit Programs

The CFPB withdrew a prior 2020 Advisory Opinion which provided guidance on how lenders could implement Special Purpose Credit Programs (SPCPs).

ECOA generally prohibits discrimination in credit transactions on the basis of age, race, color, religion, national origin, receipt of public assistance benefits, and exercise of rights under various federal consumer financial protection statutes.  ECOA includes an exception which allows for-profit creditors to extend credit pursuant to an SPCP to meet special social needs.  SPCPs must meet standards prescribed in regulations by the CFPB.  In 2020, the CFPB issued guidance which provided more detail on the content that lenders must include in a written plan that establishes and administers the SPCP, as well as the types of research and data lenders can use to support the need for such a program.

In April 2026, the CFPB issued amendments to its ECOA regulations which curtailed the scenarios where SPCPs may be used and which created additional procedural requirements for the adoption and implementation of SPCPs.  In light of these amendments, the CFPB has now withdrawn the prior 2020 guidance, finding that some of the statements in the guidance are outdated and conflict with the recently amended ECOA regulations on SPCPs.  The CFPB stated that the rescission is intended to avoid confusion about the appropriate standards and related conditions for SPCPs.