Benjamin K. Olson Quoted in Law360 Article, “CFPB Has Charted Credit-Scoring Road Map, Atty Says”
Law360Benjamin K. Olson
Benjamin K. Olson was quoted on September 15, 2017 in a Law360 article, “CFPB Has Charted Credit-Scoring Road Map, Atty Says,” which discussed the CFPB’s move to issue its first no-action letter, setting a basis for firms who want to develop alternative credit-scoring mechanisms while functioning under the existing regulations. The article noted, “The CFPB’s letter to Upstart Networks Inc., stating that the bureau would not undertake an investigation or enforcement action, related to Upstart's use of nontraditional scoring methods when evaluating a potential borrower’s creditworthiness. The letter was similar to no-action letters issued by other federal financial regulators. Unlike the U.S. Securities and Exchange Commission and other financial regulators that issue no-action letters, the CFPB required Upstart to provide data about its lending and alternative data use in exchange for the no-action relief.”
Olson added, “That is likely to make companies uneasy about applying for no-action relief from the CFPB. People are discouraged today about getting involved.”
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