summary
Introduced
07/09/2019
07/09/2019
In Committee
07/16/2019
07/16/2019
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
To amend the Fair Credit Reporting Act to establish clear Federal oversight of the development of credit scoring models by the Bureau of Consumer Financial Protection, and for other purposes. This bill provides that the Consumer Financial Protection Bureau (CFPB) must regulate credit score models by establishing standards for validating the accuracy and predictive value of these models. The bill also gives the CFPB the authority to prohibit the use of certain factors in credit score models. The CFPB must report on the impact of the inclusion of nontraditional data in these models.
AI Summary
This bill, the Clarity in Credit Score Formation Act of 2019, aims to establish clear federal oversight of the development of credit scoring models by the Consumer Financial Protection Bureau (CFPB). The bill requires the CFPB to regulate credit score models by setting standards for validating their accuracy and predictive value, and gives the CFPB the authority to prohibit the use of certain factors in these models. Additionally, the bill directs the CFPB to study the impact of using traditional or alternative modeling techniques to analyze non-traditional data, such as telecommunications and utility payments, on credit access and scores for underserved communities and other demographic groups.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Placed on the Union Calendar, Calendar No. 248. (on 11/21/2019)
Official Document
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bill summary
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bill summary
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bill summary
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