The _Equal Credit Opportunity Act_ requires that any credit-scoring
system be statistically sound. ECOA does not allow credit scoring models
to grade race, relision, sex, or national origin. Does this guarantee
there will be no discrimination?
On Thu, 27 Oct 1994 [EMAIL PROTECTED] wrote:
> Come on now!! I can't believe nobody on this network knows in which cases
> credit scoring is legal, and in which it is not. So, a repeat of my early
> request. If I don't get any responses this time, I'll give up! (Doug Henwood,
> have you vowed silence again??)
>
> The issue of credit scoring came up in my money and banking class. The eight
> textbooks I have on my shelf disaggree on the topic. Several say that the
> practice in equivalent to statistical discrimination and is illegal. Others,
> say that it only "looks" like statistical discrimination and is still a legal
> practice. Does anyone know for certain which is right? If it IS still legal,
> it creates a major barrier to women in the credit markets, which definitely
> tips the "playing field" against women and women owned businesses.
>
> If it is illegal, does anyone know which section of the Justice dept handles
> these cases. Also, if it is illegal, does anyone know why auto dealers still
> use credit scoring as their primary determenent in making car loans? Do they
> have some sort of exemption?
>
> Doug Orr
> [EMAIL PROTECTED]
>
