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Payday Lending Regulations Neglect To Address Concerns of Discrimination December 24, 2020

Posted by ambubhai in : Georgia payday loans online , add a comment

Payday Lending Regulations Neglect To Address Concerns of Discrimination

The disparate impact test is an unworkable test, but not so much for its risk of inviting massive abuses, but rather for the heavy burden the test places on claimants in Segregation in Texas, Professor Richard Epstein argues that the disparate impact standard is an “intrusive and unworkable test that combines high administrative cost with risk of inviting massive abuses by both the courts and the executive branch of government…” Indeed, in the context of payday lending.

The Department of Housing and Urban Development’s formulation associated with disparate effect test is just a three-part inquiry: at phase one the claimant must show that a specific training possesses “discriminatory impact.” At phase two, the lending company may justify its methods since they advance some “substantial, genuine, nondiscriminatory interest.” At phase three, the claimant may bypass that reason by showing the genuine ends of “the challenged practice might be served by another training which has had a less discriminatory impact.”

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