Inside AI Policy

July 22, 2024

Consumer groups push CFPB to issue guidance on less discriminatory algorithms

By Mariam Baksh / June 27, 2024

Leading consumer advocacy groups are escalating their calls for the Consumer Financial Protection Bureau to clarify its regulatory expectation that lenders must use less discriminatory alternatives to algorithms that can result in reduced or unfair access to credit for Black Americans and other underrepresented populations.

Under the Equal Access to Credit Opportunity Act, CFPB enforces what is referred to as the disparate impact standard, whereby, even if an entity is not evidently trying to discriminate -- that would be called...

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