Industry Letter Regarding New York State's Fair Lending Law

Industry Letter

Date: April 22, 2026

To: Entities Regulated by the New York State Department of Financial Services under the New York Banking Law

Re: New York Executive Law Section 296-a

The New York State Department of Financial Services (DFS) is issuing this industry letter to remind all entities regulated by the Department under the New York Banking Law of their obligations under New York State’s fair lending law, N.Y. Exec. Law § 296a (“Section 296-a”). 

The Department is authorized to enforce state fair lending laws and to impose penalties for violations of federal fair lending laws. N.Y. Exec. Law § 296-a(8), N.Y. Banking Law § 9-d, N.Y. Fin. Serv. Law § 408(a)(1)(B).

Regulated Entities are reminded that under Section 296-a, covered credit decisions that result in a disparate impact may constitute an unlawful discriminatory practice. Consent Order, In the Matter of Rhinebeck Bank; Consent Order under New York Banking Law §§9-d and 39, In the Matter of Adirondack Trust Company; Consent Order under New York Banking Law §§9-d and 39, In the Matter of Chemung Canal Trust.

Section 296-a prohibits discrimination in, among other things, the granting, withholding, extending, or renewing, or in the fixing of the rates, terms, or conditions of any form of credit on the basis of statutorily established characteristics. N.Y. Exec. L. § 296-a(1)(b). Discrimination is prohibited on the basis of race, creed, color, national origin, citizenship or immigration status, sexual orientation, gender identity or expression, military status, age, sex, marital status, status as a victim of domestic violence, disability, or familial status. Id.  

Regulated Entities must comply with all applicable New York State laws, including Section 296-a. This industry letter does not impose any new requirements on Regulated Entities.