Category Archives: Credit Reporting

CFPB’s Chopra unhappy with credit scores

American Banker’s Penny Crosman has the story here (behind a paywall but available on Lexis), based on remarks at the Fintech Nexus conference. CFPB Director Rohit Chopra also spoke about how he wants to make it easier for consumers to switch banks so they can more readily take advantage of better prices or service and […]

Study finds credit score changes affect default rate even if underlying record hasn’t changed

Amiyatosh Purnanandam, and Alexander Wirth, both of the University of Michigan, Stephen M. Ross School of Business, have written Can Credit Rating Affect Credit Risk? Causal Evidence from an Online Lending Marketplace. Here’s the abstract: Credit rating is determined by a borrower’s credit risk, but can the rating in itself change a borrower’s credit risk in […]

CFPB seeks public info on data brokers’ business

The Consumer Financial Protection Bureau wants to know more about data brokers and their practices, as these entities gather and sell consumers’ personal and private information. The CFPB requests public feedback including information about the entities that collect personal consumer data, the types of data collected, sources that data brokers use to collect information, their […]

WaPo: “Why the South has such low credit scores”

A recent Washington Post article looks at “a big, fat map of credit scores reproduced from a recent economics paper” and finds “any number of tantalizing questions.” But “most intrigu[ing]” is “that big band of credit-score calamity that stretches across the American South”: “Almost every corner of America’s most populous region — every race, every […]

White House’s Recent Announcements on Renters’ Rights

Following a year of dramatic rent increases, growing scrutiny of tenant screening practices, and a general rise in housing insecurity, the White House recently issued a new Blueprint for a Renters Bill of Rights and announced new actions to bring more fairness to the rental housing market. In its declaration to promote tenants’ rights, the […]

New FCRA case worth teaching: Bibbs v. TransUnion

by Jeff Sovern As I prepare to teach consumer law in the spring, I’m leaning towards adding a new case to the course, Bibbs v. TransUnion, LLC, 43 F.4th 331 (3rd Cir. 2022). First, take a look at what the court called a snapshot of the plaintiff’s credit report:   Do you understand it (if […]

Emily Flitter’s book The White Wall: Highly recommended for those interested in discrimination in consumer transactions

by Jeff Sovern New York Times reporter Emily Flitter's book The White Wall: How Big Finance Bankrupts Black America is an exploration of racism in American financial institutions, including banks, insurers, and brokerage houses. The book includes stories of how Black customers and employees are mistreated by these institutions, and places their treatment in a […]

WSJ: Credit repairers deluging credit bureaus and FTC with false ID theft claims, impairing credit report accuracy and slowing the granting of loans

Here, in an article by AnnaMaria Andriotis, an excellent reporter on consumer protection issues (behind paywall). The practice, known as credit washing, often leads to temporary removal of the damaging item from the consumer's credit report, and a correspondingly evanescent improvement in the consumer's credit score. Excerpt: Credit washing has slowed down the process of […]

Conti-Brown’s and Feinstein’s article finds grade inflation in CRA ratings

Peter Conti-Brown of Penn’s Wharton School and the Brookings Institution and Brian D. Feinstein, also of Wharton have written Banking on a Curve: How to Restore the Community Reinvestment Act, Harvard Business Law Review, Forthcoming. Here’s the abstract: The federal government’s primary financial-regulatory tool for combating wealth inequality is broken. Intended to push banks towards deeper engagement […]

WSJ: Equifax Sent Lenders Inaccurate Credit Scores on Millions of Consumers

Here but paywalled. Excerpt: * * * The scores were sometimes off by 20 points or more in either direction, the people said, enough to alter the interest rates consumers were offered or to result in their applications being rejected altogether. * * * “We have determined that there was no shift in the vast […]