12 C.F.R. § 1002.3
§ 1002.3 Limited exceptions for certain classes of transactions. (12 CFR Part 1002)
Operative Text
(a) Public utilities credit—(1) Definition. Public utilities credit refers to extensions of credit that involve public utility services provided through pipe, wire, or other connected facilities, or radio or similar transmission (including extensions of such facilities), if the charges for service, delayed payment, and any discount for prompt payment are filed with or regulated by a government unit. (2) Exceptions. The following provisions of this part do not apply to public utilities credit: (i) Section 1002.5(d)(1) concerning information about marital status; and (ii) Section 1002.12(b) relating to record retention. (b) Securities credit (1) Definition. Securities credit refers to extensions of credit subject to regulation under section 7 of the Securities Exchange Act of 1934 or extensions of credit by a broker or dealer subject to regulation as a broker or dealer under the Securities Exchange Act of 1934. (2) Exceptions. The following provisions of this part do not apply to securities credit: (i) Section 1002.5(b) concerning information about the sex of an applicant; (ii) Section 1002.5(c) concerning information about a spouse or former spouse; (iii) Section 1002.5(d)(1) concerning information about marital status; (iv) Section 1002.7(b) relating to designation of name to the extent necessary to comply with rules regarding an account in which a broker or dealer has an interest, or rules regarding the aggregation of accounts of spouses to determine controlling interests, beneficial interests, beneficial ownership, or purchase limitations and restrictions; (v) Section 1002.7(c) relating to action concerning open-end accounts, to the extent the action taken is on the basis of a change of name or marital status; (vi) Section 1002.7(d) relating to the signature of a spouse or other person; (vii) Section 1002.10 relating to furnishing of credit information; and (viii) Section 1002.12(b) relating to record retention. (c) Incidental credit (1) Definition. Incidental credit refers to extensions of consumer credit other than the types described in paragraphs (a) and (b) of this section: (i) That are not made pursuant to the terms of a credit card account; (ii) That are not subject to a finance charge (as defined in Regulation Z, 12 CFR 1026.4); and (iii) That are not payable by agreement in more than four installments. (2) Exceptions. The following provisions of this part do not apply to incidental credit: (i) Section 1002.5(b) concerning information about the sex of an applicant, but only to the extent necessary for medical records or similar purposes; (ii) Section 1002.5(c) concerning information about a spouse or former spouse; (iii) Section 1002.5(d)(1) concerning information about marital status; (iv) Section 1002.5(d)(2) concerning information about income derived from alimony, child support, or separate maintenance payments; (v) Section 1002.7(d) relating to the signature of a spouse or other person; (vi) Section 1002.9 relating to notifications; (vii) Section 1002.10 relating to furnishing of credit information; and (viii) Section 1002.12(b) relating to record retention. (d) Government credit—(1) Definition. Government credit refers to extensions of credit made to governments or governmental subdivisions, agencies, or instrumentalities. (2) Applicability of regulation. Except for § 1002.4(a), the general rule against discrimination on a prohibited basis, the requirements of this part do not apply to government credit.
Section 1002.3 of 12 CFR Part 1002 carves out four specific categories of credit transactions — public utilities credit, securities credit, incidental credit, and government credit — from certain requirements that otherwise apply under the Equal Credit Opportunity Act's implementing regulation. Each category receives a tailored set of exemptions, meaning some ECOA protections still apply while others do not. For example, government credit is exempt from nearly all of the regulation's requirements, but the core prohibition against discrimination on a prohibited basis under § 1002.4(a) continues to apply across all four categories.
Plain English — not legal advice.
Property owners and managers who extend credit that might qualify as 'incidental credit' under § 1002.3(c) — such as informal payment arrangements that carry no finance charge and are not payable in more than four installments — should be aware that several standard ECOA compliance obligations, including certain notification and record-retention requirements, do not apply to those transactions. Compliant operators generally identify which category, if any, a credit extension falls into before determining which provisions of 12 CFR Part 1002 govern their practices. Even where exemptions apply under § 1002.3, the general anti-discrimination rule of § 1002.4(a) remains in effect and shapes how credit decisions must be made.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
If you have applied for a credit arrangement with a landlord or utility provider, § 1002.3 determines which ECOA protections apply to that transaction based on its type — for instance, whether it involves a regulated utility service or qualifies as incidental credit. Even under an exempted category, the core prohibition on discrimination found in § 1002.4(a) still applies, which means applicants retain a fundamental protection regardless of the transaction type. Tenants who believe a credit decision violated their rights under 12 CFR Part 1002 can raise a potential violation with a housing or tenant-rights organization, file a complaint with the Consumer Financial Protection Bureau, or explore whether the issue can be raised as a defense in a relevant proceeding.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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