CFPB Rescinds 2020 Special Purpose Credit Program Advisory Opinion

On June 17, the CFPB rescinded its December 2020 advisory opinion addressing Special Purpose Credit Programs (SPCPs) under Regulation B and the Equal Credit Opportunity Act (ECOA). The 2020 guidance had sought to clarify certain requirements applicable to for-profit organizations establishing SPCPs designed to meet special social needs.

According to the Bureau, the 2020 advisory opinion had become outdated and contained statements that conflicted with the amended regulation. The CFPB also stated that rescinding the opinion would help avoid confusion regarding the applicable requirements for such programs and address constitutional concerns identified by the Bureau.

Specifically, the CFPB stated that the 2020 advisory opinion:

• Contained superseded interpretations. Certain portions of the opinion addressed provisions of Regulation B that were subsequently amended in April 2026 and no longer reflected the current regulatory framework.
• Included guidance inconsistent with the revised rule. The Bureau noted that the opinion contemplated the use of characteristics such as race, national origin, and sex as eligibility factors in certain circumstances, while the April 2026 rule prohibits for-profit SPCPs from using race, color, national origin, or sex as eligibility criteria.
• Applied a different standard for determining need. The rescinded opinion discussed circumstances in which a class of persons probably would not receive credit under a creditor's customary standards, whereas the amended rule requires creditors to document that the affected class actually would be denied credit absent the SPCP.
• Raised constitutional concerns. The Bureau stated that the prior guidance could be viewed as encouraging programs that distinguish among applicants based on protected characteristics and therefore could present constitutional issues.

The Bureau emphasized that the rescission itself does not have the force and effect of law and does not create any new substantive requirements.

Putting It Into Practice: The recission follows the CFPB’sApril 2026 amendments to Regulation B, which revised the standards governing SPCPs offered or participated in by for-profit organizations (previously discussed here). Companies relying on prior CFPB guidance should continue to monitor the Bureau's ongoing efforts to withdraw or revise existing interpretations and update compliance practices as necessary.