Credit scoring

In October 2018, the Singapore-based startup LenddoEFL was one of a group of microfinance startups aimed at the developing world that used non-traditional types of data such as behavioural traits and smartphone habits for credit scoring. Lenddo's algorithm uses numerous data points, including the
In October 2018, in response to questions from a committee of MPs, the UK-based Student Loans Company defended its practice of using "public" sources such as Facebook posts and other social media activity as part of the process of approving loans. In one case earlier in the year, a student was told
In a November 2018 report based on a year's study of the use of data scores, Data Justice Lab provided a comprehensive look at the use of data-driven citizen scoring in government, particularly focusing on six case studies drawn from local councils in the UK. The report noted there is no systematic
After an 18-month investigation involving interviews with 160 life insurance companies, in January 2019 New York Financial Services, the state's top financial regulator, announced it would allow life insurers to use data from social media and other non-traditional sources to set premium rates for
15 Aug 2018
In 2018, Wells Fargo disclosed that due to a computer bug that remained undiscovered for nearly five years 600 customers were granted more expensive mortgage loans than they could have qualified for. About 400 of them went on to lose their homes. The announcement reignited the public anger and
08 May 2018
In 2018, based on an analysis of 270,000 purchases between October 2015 and December 2016 on a German ecommerce site that sells furniture on credit, researchers at the National Bureau of Economic Research found that variables such as the type of device could be used to estimate the likelihood that a
30 Sep 2018
In September 2017, the UN Capital Development Fund, the UN Development Programme, and the non-profit San Francisco-based startup Kiva, which has worked for 13 years as a crowd-funded microlending platform announced a joint initiative to open up financial services to the 20% of the Sierra Leone
30 Sep 2018
In September 2018, the US Department of Homeland Security proposed to add credit scores and histories to the list of information immigrants are required to submit when applying for legal resident status. The stated purpose of the proposed rule is to bar those who might become a "public charge" from
13 Jan 2000
In 2000, Experian entered into a consent decree with the Federal Trade Commission and agreed to pay $1 million to settle charges that the company blocked and delayed incoming phone calls from consumers wishing to discuss the contents of and possible errors in their credit reports. Under the Fair
21 Feb 2007
In 2007, Experience agreed to pay $300,000 to settle a Federal Trade Commission complaint that the company's ads for a "free credit report" failed to explain clearly enough that consumers who signed up would be enrolled in a credit-monitoring programme costing $79.95 per year. The FTC alleged that
23 Mar 2017
In March 2017, Experian agreed to pay a $3 million fine to settle a complaint brought by the Consumer Financial Protection Bureau that until 2014 the company had provided consumers with "educational" credit scores that were different from the FICO scores actually provided to credit card issues
04 Jan 2017
In January 2017 two of the three largest US credit reporting bureaus, Equifax and TransUnion, were jointly fined $23 million in a settlement with the Consumer Financial Protection Bureau. CFPB held that the two companies marketed some of their products as free or costing $1 when in fact consumers
02 Aug 2013
In August 2013, a jury in the Portland, Oregon Federal District Court awarded Julie Miller $18.4 million in punitive damages when despite two years of complaints and filings Equifax failed to rectify errors in her credit report that blocked many aspects of her financial life. Miller had followed the
30 Jul 2003
In 2000, and then again in 2003, the US Federal Trade Commission fined Equifax for blocking phone calls from consumers trying to get information about their credit or discuss their reports or making them wait for extended periods of time in violation of the Fair Credit Reporting Act. In 1996
In January 2018 the Cyberspace Administration of China summoned representatives of Ant Financial Services Group, a subsidiary of Alibaba, to rebuke them for automatically enrolling its 520 million users in its credit-scoring system. The main complaint was that people using Ant's Alipay service were
In 2013, in collaboration with the Illinois Institute of Technology, the Chicago Police Department set up the Strategic Subjects List, an effort to identify the most likely victims and perpetrators of gun violence. In 2016, a report published by the RAND Corporation found that the project, which had
03 Sep 2016
In May 2014 the Polish Ministry of Labor and Social Policy (MLSP) introduced a scoring system to distribute unemployment assistance. Citizens are divided into three categories by their “readiness” to work, the place they live, disabilities and other data. Assignment to a given category determines
27 Jun 2015
A 2015 study by The Learning Curve found that although 71% of parents believe technology has improved their child's education, 79% were worried about the privacy and security of their child's data, and 75% were worried that advertisers had access to that data. At issue is the privacy and security
10 Jan 2016
A new generation of technology has given local law enforcement officers in some parts of the US unprecedented power to peer into the lives of citizens. In Fresno, California, the police department's $600,000 Real Time Crime Center is providing a model for other such centres that have opened in New
01 Sep 2016
Automated systems such as the personality test developed by Massachusetts-based workforce management company Kronos are increasingly used by large companies to screen job applicants. To avoid falling foul of regulations prohibiting discrimination against those with mental illness, often the
30 Nov 2015
In 2015, a small number of Silicon Valley start-ups began experimenting with assessing prospective borrowers in developing countries such as Kenya by inspecting their smartphones. Doing so, they claimed, enabled them to charge less in interest than more traditional microlenders, since many of their
09 Oct 2015
In 2015, Ant Financial, a Chinese company affiliated with Alibaba, began deploying "Sesame Credit scores". Ant, which also runs the popular payment app Alipay, claims that it uses both online and offline purchasing and spending habits to calculate a credit worthiness score for each of its more than
04 Jan 2016
In 2016, the US's third-largest property and casualty insurer, Liberty Mutual, announced it would partner with Subaru to enable drivers who have bought Subaru's Starlink infotainment system to download a car app that will notify them if they are accelerating too aggressively or braking too hard. The
05 Apr 2015
Because banks often decline to give loans to those whose "thin" credit histories make it hard to assess the associated risk, in 2015 some financial technology startups began looking at the possibility of instead performing such assessments by using metadata collected by mobile phones or logged from
15 Apr 2016
Between 2010 and 2016, access control spyware implementing a remote "kill switch" was installed increasingly often in rent-to-buy laptops and cars financed by subprime loans. In a 2012 case the Federal Trade Commission settled with seven computer rental companies over their use of DesignerWare's