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ARTICLE · 07 JANUARY 2021

CFPB Issues Advisory Opinion Addressing Regulatory Uncertainty Regarding Special Purpose Credit Programs

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ECOA-compliant SPCPs, the Bureau does not determine or provide preapproval regarding whether individual programs qualify for SPCP status.

United StatesFinance and Banking
Christopher J. Willis
Christopher J. Willis
Lori Sommerfield
Lori Sommerfield
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On December 21, 2020, the CFPB issued an advisory opinion that addresses regulatory uncertainty related to certain aspects of special purpose credit programs (SPCPs) designed and implemented by for-profit organizations. The advisory opinion was issued as an interpretive rule that will be published in the Federal Register and therefore is exempt from the notice and comment rulemaking requirements of the Administrative Procedure Act.

In the preamble, the CFPB noted that issuance of the advisory opinion was prompted by stakeholder comments received in response to the Bureau's recent Request for Information (RFI) on the Equal Credit Opportunity Act (ECOA) and Regulation B, some of which advocated for further industry guidance on compliant implementation of SPCPs. The CFPB stated that it was issuing the advisory opinion to address regulatory uncertainty "with the hope that broader creation of special purpose credit programs by creditors will help expand access to credit

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