On Compliance: The impact of 20 million improved credit scores

Fair lending considerations

As you’re likely aware, the credit scores of about 20 million Americans recently improved as a result of new policies implemented by the three major credit bureaus this summer. But have you considered the compliance impacts of this change?

Some credit scores may have jumped as much as 40 points, which could result in the reclassification of millions of consumers’ creditworthiness. For credit card issuers and other lenders, this is an important adjustment to think through.

The policy change comes on the heels of a class-action lawsuit alleging the credit bureaus weren’t doing an acceptable job ensuring damaging activity noted on credit reports actually belonged to the person whose score was dinged. That lawsuit also claimed the process of requesting corrections to these types of errors was too difficult for the average consumer.


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