Will be the data getting used for advertising, fraudulence detection, underwriting, rates, or business collection agencies? Validating an information field for just one use вЂ” such as for example fraudulence detection вЂ” doesn’t lso mean it is right for another usage, such as for instance underwriting or rates. Hence, it’s important to ask in the event that information have now been validated and tested for the uses that are specific. Fair financing danger can arise in a lot of areas of a credit deal. Dependent on the way the information are employed, appropriate fair financing dangers could consist of steering, underwriting, rates, or redlining.
Do consumers discover how you may be making use of the information?
Although customers generally know how their economic behavior impacts their conventional credit ratings, alternate credit scoring techniques could raise concerns of fairness and transparency.