Re: New Bias Charges Against FICO Scores ..... unfair to minorities
08-05-2012 11:13 AM
"I would take the bet that the government involved in credit scoring any day of the year."
Wuh? Is involved or will be involved?
"Going to" implies a definite plan. I don't see anything about a definite plan in this article.
The Consumer Financial Protection Bureau now oversees credit reporting, and has expressed an interest in regulating/investigating credit scoring. They have broad regulatory authority over anything to do with consumer finance (meaning nothing but an act of Congress can stop them from taking action):
In a speech in Detroit Monday, Consumer Financial Protection Bureau director Richard Cordray pointed out the importance of access to credit: The ability to take out loans makes it possible to get a college degree, buy a home, use a credit card, or buy a car, he said, adding that employers also increasing use scores to determine whether an applicant is eligible for a job.
“Whether you realize it or not, [credit agencies’] scorekeeping exerts a tremendous and growing influence over the ways and means of your financial life,” he said. That’s why the bureau chose to focus on the industry: The new supervision means that the bureau will have the authority to conduct on-site examinations of agencies to check whether they are complying with the law, to better understand the companies’ business models and practices, and to address practices that might be hurting consumers, Cordray said.