October 16, 2023

Biden Admin Sends Warning to Banks That Refuse to Help Illegal Immigrants

The Biden administration has issued a warning to banks to keep them from refusing services to illegal immigrants.

The Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) released a joint statement alleging that it is illegal to consider a person's immigration status in money lending decisions.

“Fair access to credit is crucially important for building wealth and strengthening household financial stability,” Rohit Chopra, CFPB director, said in a press release.

“The CFPB will not allow companies to use immigration status as an excuse for illegal discrimination," it added.

"The agencies argue that protections afforded by ECOA and other laws extend to alienage, so banks that have blanket policies to deny loans to illegal immigrants may be breaking the law," the Epoch Times reported.

“Lenders should not deny people the opportunity to take out a loan to buy a home, build their businesses or otherwise pursue their financial goals because of unlawful bias and without regard to their actual ability to repay,” Assistant Attorney General Kristen Clarke of the DOJ's Civil Rights Division said in a statement, according to the outlet.

The controversial message is leading to much speculation over the impact the changes could have on the nation. Some suggest that the demands could lead to the next banking crisis.

Others see the move as political for Biden as he seeks another term in the White House, using the push to help sway voters favorable to easier banking and lending policies toward immigrants.

The order also puts banks in the difficult situation of complying or opening themselves up to consequences from the government or potential lawsuits from clients.

The situation is certainly an important one to watch in the days ahead as economic issues remain a top priority for the majority of Americans.

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