Rollback of Equal Credit Opportunity Act

Denies Women Access to Fair Credit

California Commission on the Status of Women and Girls Condemns Weakening Anti-discrimination Safeguards in Lending

(SACRAMENTO, CA) –The California Commission on the Status of Women and Girls strongly condemns the federal government’s effort to roll back certain critical protections under the Equal Credit Opportunity Act (ECOA) that undermine decades of progress toward fair and transparent access to credit.

“These rollbacks will have devastating impacts on communities of color, who already experience unequal access to credit-building opportunities. Everyone deserves the same access to credit, regardless of sex, race, age, or background,” said Chair Dr. Rita Gallardo Good.

“These protections are not optional—they are essential,” said Executive Director Darcy Totten. “Rolling back rules that prevent credit discrimination would leave women and other vulnerable communities exposed to unfair treatment, opaque lending practices, and financial harm.” Credit is not a privilege—it is a pathway to economic opportunity.”

Why it matters

Credit discrimination disproportionately harms women, who already face systemic barriers in building wealth and accessing capital. Women are more likely to be denied loans or offered less favorable terms, even when they meet financial qualifications. Research shows that women entrepreneurs receive significantly less funding than men, limiting their ability to grow businesses and contribute to local economies. Women of color, in particular, experience compounded discrimination, facing higher interest rates and fewer approvals despite equal or stronger credit profiles.

Without strong protections, women risk being discouraged from applying for credit, burdened with higher costs, or denied opportunities to pursue education, start businesses, or purchase homes. These setbacks reverberate across families and communities, perpetuating cycles of inequality and economic instability.

The Consumer Financial Protection Bureau’s (CFPB) proposed rollback undermines protections against discouragement in credit applications, restrict special purpose credit programs designed to expand access, and eliminate the ability to claim disparate impact—a critical tool for proving discrimination when neutral policies disproportionately harm women and other groups. These provisions have been in place for decades and remain vital to combating discriminatory practices in the credit industry.

The Commission urges the CFPB to withdraw this harmful proposal and reaffirm its commitment to enforcing anti-discrimination statutes. We call on policymakers, advocates, and community leaders to stand united in protecting fair access to credit. Women cannot afford to lose ground in the fight for economic equity.

Did you know?

Before 1974, if you were a single woman, you almost always needed your father, brother, or other male relative to co-sign loans. If you were a married woman, you could not obtain credit cards in your own name.

In 2025, startups founded solely by women received just 2.3% of total venture capital funding.

Minority- and women-owned businesses are often charged interest rates 2–3 percentage points higher than white male-owned businesses with equal qualifications.

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For 60 years, the California Commission on the Status of Women and Girls has identified and worked to eliminate inequities in state laws, practices, and conditions that affect California’s women and girls. Established as a state agency with 17 appointed commissioners in 1965, the Commission regularly assesses gender equity in health, safety, employment, education, and equal representation in the military and the media. The Commission provides leadership through research, policy and program development, education, outreach and collaboration, advocacy, and strategic partnerships. women.ca.gov.