Following the news that the House Committee on Financial Services passed H.R. 3621 “The Comprehensive CREDIT Act of 2020,” OLA CEO Mary Jackson issued the following statement:
“H.R. 3621 is a dangerous piece of legislation that would cause significant harm to consumers by diminishing credit options and complicating the already-confusing credit process.
In recent years, the fintech industry has made major advances through the use of new credit models and algorithms, which has provided a pathway to credit for consumers who have long been denied by traditional financial institutions. By limiting the ability of lenders to use the most up-to-date and comprehensive consumer data when making credit decisions, H.R. 3621 would cause much of the industry’s recent, pro-consumer innovations to be lost.
Our members utilize all the information available to them to make lending safe with credit decisioning tools that must comply with current Equal Credit Opportunity Act (ECOA) protections that ensure against credit discrimination. Interjecting additional layers of government bureaucracy to examine proprietary models is an overreach and would be a major setback on innovation advances.”
