William & Mary Journal of Race, Gender, and Social Justice
Abstract
Credit functions as a fundamental gateway to economic mobility; however, questions arise regarding the legal and societal implications when an individual is denied access to such credit. In theory, fair lending principles dictate that equal access to credit is a legal right. The premise is reasonable but becomes convoluted when consumer credit is clouded by lender bias, resulting in credit discrimination. This Article presents a comparative perspective revealing a jurisdictional difference in legislation affecting equal access to credit between the United States and Canada. Specifically, this Article will focus on the American Equal Credit Opportunity Act (hereinafter ECOA) and whether an equivalent legislation comparable in Canada is needed to further protect consumer rights in financial services and credit relationships. Canada’s current legislative framework is failing to safeguard fair lending principles and meaningful access to financial services. The structural inequities and exclusion embedded within the financial system continue to create barriers for racialized and Indigenous communities. By failing to address these issues, economic justice and meaningful financial inclusion cannot exist.
With the advancement of technology and the accelerated growth in financial services, financial regulators are continuing to struggle to not only ensure fiscal stability, but also to understand unintended pitfalls produced by innovation. The intersection between these new modalities and discrimination is a critical concern for stakeholders. This has led to a renewed interest in ensuring consumer protection. However, the current regulatory system and the structural components governing consumer credit have been critiqued for failing to create a uniform national regime. The last few years have seen a resurgence of legislative interventions with respect to financial consumer protection, yet the one component not directly addressed is credit discrimination and financial bias within the meaningful extension of financial services.