CFPB Releases Study On Credit Score Disparities

Posted by Orb Staff on September 26, 2012 No Comments
Categories : Residential Mortgage

12465_cfpb CFPB Releases Study On Credit Score Disparities The Consumer Financial Protection Bureau (CFPB) has released a study comparing credit scores sold to creditors and those sold to consumers. According to the agency, the study found that about one out of five consumers would likely receive a meaningfully different score than would a lender.

The CFPB determined that when consumers purchase their score from a credit bureau, the score they receive may be meaningfully different from the score that a lender would consult in making a decision. As a result, the CFPB says that the score discrepancies may generate consumer harm, but there is no way for consumers to know how the score they receive will compare to the score a creditor uses in making a lending decision.

‘This study highlights the complexities consumers face in the credit scoring market,’ says CFPB Director Richard Cordray. ‘When consumers buy a credit score, they should be aware that a lender may be using a very different score in making a credit decision.’

The complete study is available online.

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