Preventing Racial Profiling in Lending Act

Preventing Racial Profiling in Lending Act

This bill prohibits a federal agency from requiring any person or entity to estimate a borrower's race or ethnicity through visual observation or surname when extending credit.

Bill 117 HR 6802, also known as the Preventing Racial Profiling in Lending Act, aims to address the issue of racial discrimination in lending practices. The bill seeks to prohibit lenders from using race, color, religion, national origin, sex, gender identity, sexual orientation, or marital status as a basis for determining creditworthiness.

Under this legislation, lenders would be required to implement policies and procedures to prevent racial profiling in lending decisions. This includes conducting regular training for employees on fair lending practices and ensuring that all loan applications are evaluated based on objective criteria.

Additionally, the bill would establish a reporting system for complaints of racial profiling in lending, allowing individuals to report any instances of discrimination they experience. Lenders found to be in violation of the law could face penalties and fines. Overall, the Preventing Racial Profiling in Lending Act aims to promote fairness and equality in the lending industry by prohibiting discriminatory practices based on race or other protected characteristics.