Federal financial agency now requires collection of LGBTQ data
The Consumer Financial Protection Bureau issued new guidelines on March 31 requiring the collection of LGBTQ identifying data to improve data collection on small business lending for LGBTQ-owned businesses.
The inclusion of this provision follows a February letter issued by U.S. Sens. Alex Padilla (D-Calif.) and Kirsten Gillibrand (D-N.Y.) and U.S.
Rep. Ritchie Torres (D-N.Y.) that urged 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 under Section 1071 of the Dodd-Frank Act.
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.
