This story appeared in Bank Digest.
The Consumer Financial Protection Bureau has issued a Request for Information regarding ways to expand access to credit for consumers who are credit invisible or who lack enough credit history to obtain a credit score. The bureau said it was seeking public feedback on the benefits and risks of tapping alternative data sources such as bills for mobile phones and rent payments to make lending decisions about consumers whose lack of credit history might otherwise block opportunities. Comments must be received by May 19, 2017.
In prepared remarks at the Alternative Data Field Hearing in Charleston, W.Va., on Feb. 16, 2017, CFPB Director Richard Cordray said, "People with little or no credit history, or who lack a credit score, have fewer opportunities to borrow money in order to build a future and any credit that is available usually costs more. That only deepens their economic vulnerability."