On June 17, the CFPB rescinded a December 2020 advisory opinion (previously covered by InfoBytes here) that addressed how Regulation B, which implements the ECOA, applies to certain aspects of special purpose credit programs (SPCPs) designed and implemented by for-profit organizations to meet special social needs, including written-plan content and the research and data used to determine need. The CFPB said the advisory opinion is outdated and inconsistent with its April 2026 final rule amending Regulation B, scheduled to become effective July 21 (previously covered by InfoBytes here), including the final rule’s prohibition on for-profit SPCPs using an applicant’s race, color, national origin or sex, or any combination of those characteristics, as a common characteristic or factor in determining program eligibility. The CFPB also said the final rule requires for-profit organizations offering SPCPs to establish and administer those programs to extend credit to a class of persons who, under the organization’s actual credit standards, would actually be denied credit in the absence of the program.

The CFPB stated that the rescission is intended to avoid confusion about the standards and conditions that apply to SPCPs offered or participated in by for-profit organizations. The CFPB also cited what it deemed “serious constitutional concerns” raised by SPCPs to the extent they are read as authorizing discrimination based on race, color, sex, or national origin, and said the advisory opinion involved the government in expressly encouraging private actors to create SPCPs limited on those bases.