Inclusion of LGBTQ+ Small Business Data Secured in Enforcement of Fair Lending Requirements

WASHINGTON, D.C. — Days after International Transgender Day of Visibility (March 29) U.S. Senators Alex Padilla (D-Calif.), Kirsten Gillibrand (D-N.Y.), and Representative Ritchie Torres (D-N.Y.-15) on April 4 applauded the Consumer Financial Protection Bureau or CFPB for requiring the collection of LGBTQ+ identifying data in their finalized rule on Section 1071 of the Dodd-Frank Act. The inclusion of this provision follows a February letter issued by the lawmakers urging the CFPB to improve data collection on lending to LBGTQ-owned businesses. The provision allows the CFPB to more accurately monitor trends of discrimination and helps ensure the nation’s 1.4 million LGBTQ-owned businesses are being treated fairly within the financial sector so that they can effectively compete, create opportunities, invest in employees and uplift their communities.

According to a recent report, 35% of LGBTQ+ Americans reported that discrimination affected their financial well-being to a moderate or significant degree in the past year. Padilla led a letter, joined by Gillibrand and Torres, calling on CFPB Director Rohit Chopra to use his existing legal authority to include sexual orientation and gender identity as required data points for financial institutions to collect and report for the purpose of enforcing fair lending laws. The CFPB finalized the rule on March 30, including the data-reporting provision the lawmakers requested.

More information on the CFPB’s final rule is available here.

Full text of the letter previously sent by the lawmakers is available here