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CFPB details legal requirements for lenders’ use of A.I. when making credit decisions

The Consumer Financial Protection Bureau (CFPB) on Tuesday announced a series of legal requirements lenders must adhere to when using artificial intelligence (AI) or “other complex models” when making decisions about the creditworthiness of borrowers.

“The guidance describes how lenders must use specific and accurate reasons when taking adverse actions against consumers,” the CFPB said in the announcement. “This means that creditors cannot simply use CFPB sample adverse action forms and checklists if they do not reflect the actual reason for the denial of credit details ⇒

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