Credit Discrimination: 8.3 Discrimination Laws Reach Discriminatory Credit Terms, Not Just Credit Denials
Lenders sometimes argue that discrimination law applies only to denials of credit, not to the credit terms on which credit is granted. They claim that it cannot be discriminatory if more loans are made available to communities of color than to others. However, such arguments should carry no weight. Offering loans to protected classes on unfavorable terms can be discriminatory.