Analysis of Federal Reserve Research on Behavioral Scoring
Read the full comment to the Federal Reserve CRL Comments On "Report to the Congress on Reductions of Consumer Credit Limits Based on Certain Information as to Experience or Transactions of the Consumer"[1] The Federal Reserve recently issued a report based on a survey of credit card issuers that asked whether they had taken adverse action on consumers' accounts based on cardholder patronage of merchants by geographic location, merchant type or transaction type. This practice is commonly known as "behavioral scoring." The media have highlighted examples of card issuers judging consumers to be...