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CFPB Mandates Additional Specificity in Adverse Action Communications Based on AI or Complex Credit Models

On September 19, 2023, the Consumer Financial Protection Bureau (CFPB) issued Circular 2023-03 to provide creditors additional guidance for communicating denials of credit to consumers based upon artificial intelligence (AI)...more

CFPB's Annual Fair Lending Report Highlights Robust Oversight of Traditional and Innovative Lending Practices

On June 29, 2023, the Consumer Financial Protection Bureau issued its annual fair lending report to Congress, confirming that although there was relatively little public fair lending enforcement in 2022, the CFPB and other...more

CFPB Warns Complex Consumer Credit Decision Models May Violate ECOA

On May 26, 2022, the Consumer Financial Protection Bureau warned via Consumer Financial Protection Circular 2022-03 that creditors using complex algorithmic credit evaluation models are not shielded from complying with the...more

CFPB Shores Up Legal Basis for Monitoring Loan Servicing Discrimination

On May 9, 2022, the Consumer Financial Protection Bureau issued an advisory opinion declaring that the Equal Credit Opportunity Act’s prohibitions against discrimination protect borrowers in all aspects of a credit...more

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