Which federal agency enforces fair lending laws and what protections are included?

• A. The Department of Housing and Urban Development and the OCC enforce fair lending.
• B. The Federal Reserve and the FDIC enforce fair lending.
• C. The Department of Justice and the Federal Trade Commission enforce fair lending laws; protections include equal access to credit regardless of protected characteristics.
• D. Fair lending laws are not federally enforced.

Answer: (C)

The idea behind fair lending laws is to ensure credit decisions are not made based on who someone is, but on their ability to repay, so people aren’t denied or charged more simply because of protected characteristics such as race, religion, national origin, sex, or age. The federal enforcement of these rules is led by the Department of Justice and the Federal Trade Commission, which can bring actions to stop discriminatory lending and to remedy violations. The protections meant by these laws are equal access to credit and non-discriminatory terms for all applicants, regardless of protected characteristics. While other agencies that regulate banks may address related issues, the DOJ and FTC together are the primary federal enforcers of fair lending laws.